Jakarta, CNBC Indonesia – Energy crisis is happening in a number of countries in the world, such as the UK and China. This was marked by skyrocketing gas and coal prices, followed by an increase in oil prices.
The Governor of Indonesia for the 2015-2016 Organization of the Petroleum Exporting Countries Widhyawan Prawiraatmadja said, at least there were several factors that caused this condition.
“Energy crisis in Europe, especially the UK by the perfect storm, severe summer and cold conditions. Coupled with the limited supply from Russia as one of the main suppliers for Europe,” he said in the webinar “Energy Crisis Begins to Hit the World, How is RI’s Strategy?” which was held by IKA FH UNDIP on Sunday (10/10/2021).
Geopolitical conditions are one of the triggers, namely economic competition between the United States (US) & China, China & Australia to Russia & the United Arab Emirates. In addition, weather factors also affect the constraint of energy production from wind-power and hydro.
Meanwhile, decarbonization efforts to overcome and reduce the impact of climate change through the energy transition, seem to still face difficulties, especially in European countries.
“In the European context, increasingly stringent CO2 emission regulations have led to very high carbon prices, which have a direct impact on fossil energy, especially coal,” he explained.
Meanwhile in China, the condition of economic recovery in the Bamboo Curtain country has boosted demand for energy commodities. This is further exacerbated by the embargo on coal supply from Australia.
“So there is a little scarcity, the price goes up. So to reduce losses, China uses local energy and limits import supply, but it must be done with rotating (electricity) blackouts,” said Widhyawan.
He concluded that the phenomenon of energy crises that occurred in several countries was principally caused by dynamics supply dan demand, with increasingly complex dynamics leading to increased uncertainty.
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