International Energy Agency chief: 2023 will be a much more challenging year

Fatih Birol, president of the International Energy Agency (IEA), said that despite increases in energy prices leading to high inflation around the world, next year is riskier than this year.

In his speech at the panel organized by the Istanbul Sabancı University International Energy and Climate Center (IICEC), Birol claimed that this year’s energy crisis eclipsed the oil crisis of the 1970s and was the first major global energy crisis.

PRICES BREAK RECORD THIS YEAR

Global oil and natural gas prices, which began to rise in the second half of 2021 after the coronavirus epidemic, reduced gas shipments to Europe, its biggest customer, after Russia’s invasion of Ukraine this year and the closure of two major pipelines carrying Russian gas. gas to Europe broke records.

In addition, the sanctions initiated by Western countries due to the occupation made it difficult for the market to function.

INCREASE IN IMPORT BILL FROM TURKEY

Rising energy prices caused Turkey’s energy bill, which imports almost all the oil and natural gas it consumes, to rise to a record $95 billion as of November.

Turkey’s normal energy imports did not exceed the range of 45-50 billion USD.

Stating that half of Russia’s oil exports and two-thirds of natural gas exports go to Europe, Birol said that Europe is trying to change its energy policy based on a big supplier, but this will take time, adding: “It is trying to replace it with other countries, but this is a very difficult task. Because for decades, their entire economy has been based on this, from industry to home heating.”

Birol said that Europe, which enters winter with full tanks of gasoline, will pass this winter “with some scars” unless there is an unexpected development, but that the winter of 2023 will be harsh for Europe.

‘WE CAN STILL SEARCH FOR 2022 THAT WE DON’T LIKE’

Birol said that the slowdown in the Chinese economy this year due to coronavirus measures allowed Europe to supply liquefied natural gas, but if the Chinese economy recovers next year, both China and Europe will buy in a tight market and prices will see affected.

Birol, who started his speech by saying that “2023 will be much more challenging, we may even look for a 2022 that we don’t like,” said at the end of his speech, “The eyes of the whole world are now on what will happen. after China lifts Covid restrictions.”

ACCELERATED RENEWABLE ENERGY, CAUSES SECURITY OF SUPPLY

Birol said that according to the IEA predictions, the transition from clean sources of nuclear energy to renewable energy will be accelerated due to the energy crisis.

According to the IEA Global Review, electricity generation capacity from renewable sources will increase by 2.4 terawatts in the next five years. Birol noted that this increase is equal to the total size of the renewable energy plant commissioned in the last 20 years worldwide.

Birol stressed that the driving role to accelerate the transformation towards clean energy sources is not the fight against climate change, but energy security.

Birol, for his part, stated that they foresee a 65 percent increase in energy production from renewable sources in Turkey in the next five years and added that “Turkey thus enters the top 10 in the world and the top four of Europe in terms of growth”.

‘ELECTRICAL STORAGE SYSTEMS HAVE BECOME VITAL’

Birol noted that with the increasing participation of variable sources such as wind and sun in electricity production in Turkey, electricity storage systems have become increasingly vital to ensure energy security.

Asked if there is a problem about the availability of batteries despite the applications for electricity storage licenses from companies in Turkey, Birol said: “The topic that receives the most investment and the most interest among all the technologies of renewable energy are batteries… the solution for this is to establish the production capacity (battery), to invest”. (Reuters)