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Oil prices boost push for renewable energy

By agedleadstore
Oil prices boost push for renewable energy Feature Image
3 minute read

Oil and gas prices have skyrocketed following Russia’s invasion of Ukraine, which has prompted a renewed push for alternative energy sources.

The day Russia invaded Ukraine, oil hit above $100 per barrel and continues to climb. In response, renewable energy stocks also have surged.

Generally, a surge in oil prices attracts investors to fossil fuel companies rather than renewable energy.

But while traditional oil and gas stocks have also seen a boost, renewable energy, and solar energy in particular, are seeing considerable surges.

Solar company Sunrun (RUN) has gained 33 percent since the invasion, and Sunnova Energy (NOVA) has gained 32 percent.

NextEra Energy (NEE), which is the world’s largest generator of wind and solar energy, is up 7 percent.

Experts say that uncertainty about other sources of energy typically creates a push for renewables.

The Russian invasion in particular emphasized Europe’s dependence on Russian gas, experts say, which has caused an urgency to discover the potential for alternative sources of energy.

That’s why experts aren’t surprised at the renewed push for developing sources of renewable energy.

Experts point to another example of energy independence to emphasize this point: last year’s winter storm in Texas that left millions without power for several days.

As another winter storm approached Texas late last month, citizens looked to sources of renewable energy, such as solar, to help.

This thought pattern follows a global interest in the past decade to develop more sources of renewable energy.

The most popular sources include solar, wind, and green hydrogen, experts say.

Climate and policy experts alike say the invasion has prompted the beginning of the end of the European reliance on Russian fossil fuels.

In the short term, this means a boost of imports from the U.S. and other nations until more renewable energy sources are developed.

Germany also hopes to fulfill all energy needs with renewable sources by 2035.

Experts say the desire to be self-sufficient as well as the low cost of renewable energy is likely to trigger a global push for domestic clean energy.

U.S. leaders have not made a statement yet on this stance in light of recent events, but the current administration has expressed the need for clean energy as a long-term security strategy in the past.

Meanwhile, individual states and counties are grappling with the best locations for solar installations as popularity increases.

The best place for businesses or homeowners to start, experts say, is to seek out local incentives and tax credits that will help cover solar projects.

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