Not accurate to blame renewables for high energy prices, IEA says

Fatih Birol said not enough oil and gas supply was reaching consumers

Pathway to COP26 report

It is not accurate to put the blame of high energy prices on energy transition and renewable energy policies.

That’s the suggestion from Fatih Birol, Executive Director of the International Energy Agency (IEA) who said: “It is not accurate to lay the responsibility of the high energy prices on clean energy policies. Because we often see that there are many who suggest that high energy prices are the result of pushing clean energy policies. We think it is inaccurate and it is not fair.”

Mr Birol said that maybe this volatility in high prices stems from the fact that countries around the world do not have so many clean energy policies in place.

Hosting a live-streamed press conference, the head of the IEA discussed factors that caused high prices in the energy market. He said: “A factor I would like to underline that caused these high prices is the position of some of the major oil and gas suppliers and some of the countries did not take, in our view, a helpful position in this context.

“In fact, some of the key strains in today’s markets may be considered artificial tightness… because in oil markets today we see close to six million barrels per day in spare production capacity lies with the key producers, OPEC+ countries.”

Fatih Birol continued that not enough oil and gas supply was reaching consumers.

On Tuesday, it was announced that the US will release 50 million barrels of oil from the country’s strategic petroleum reserve to lower gas prices.

The move was followed by the UK that pledged to release 1.5 million barrels of its reserves.

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