BAKU, Azerbaijan, April 8. Sourcing fossil fuels from alternative providers to Russia is just a temporary solution as the EU harbors a clear goal of reducing the bloc’s dependence on fossil fuel energy in general, Trend reports with reference to Rystad Energy.
“Green energy – through solar and wind power, coupled with hydrogen and CCS initiatives – will be key to improving the energy security but also delivering on member countries’ energy transition goals. The European Commission in March unveiled a plan to make Europe independent of Russian gas and the Commission’s REPowerEU body has set out a framework to target a 45 percent share of renewables in primary energy by 2030. The framework demands an overall 1,600 GWac of installed capacity in Europe by 2030. In 2022, based on the current pipeline of projects, global capacity will grow at 250 GWac, and lead to green energy spending to grow by 24%, or $125 billion,” the company said in its latest report.
Surging oil, gas and power prices together with the European Union goals of becoming less dependent on Russian supplies and post-Covid-19 pandemic inflation will catapult global energy spending this year to $2.1 trillion, Rystad Energy research shows.
“A concern in energy markets is that the ongoing war in Ukraine will derail the energy transition, but the latest data suggests that spending in green energies will grow faster than in the fossil fuel sector. Without the invasion, however, there would have been less growth in investments in oil and gas and the share of green energies in global energy spending would be slightly more than today’s 31 percent,” the report reads.
Rystad Energy analysts note that Upstream oil and gas spending is now projected to grow 16 percent – or $142 billion – compared to last year as oil and gas producers around the world up their investment budgets to increase output.
For green energy in 2022, based on the current pipeline of projects, global capacity will grow at 250 gigawatts (GWac) within wind and solar, and lead green energy spending to grow by 24%, or $125 billion, the company believes.
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