How Fossil Fuel Disruptions Lead to Booms in Solar and Batteries
Past oil crises forced countries to cut fuel use and pay high prices, but now falling prices of clean tech offer another solution.
A solar panel sits atop the roof of a store as traffic and pedestrians pass by below in Sujawal in Pakistan.
Photographer: Asim Hafeez/BloombergThe war in the Middle East has roiled oil and gas markets. Under a severe scenario, with more strikes on energy infrastructure, Bloomberg Economics estimates that crude could reach $108 a barrel, adding a significant boost to inflation and even pushing some European economies to the brink of recession.
These price shocks will have global impacts. When such spikes occurred in the last century, there was little choice for import-dependent countries but to pay a premium or burn less fuel. This century, however, falling prices of solar and batteries offer another option.