Asia, Europe Accelerate Renewables as Hormuz Shock Keeps Brent Near $100
Updated
Updated · Bloomberg · Jun 4
Asia, Europe Accelerate Renewables as Hormuz Shock Keeps Brent Near $100
3 articles · Updated · Bloomberg · Jun 4
Summary
Across Asia and Europe, governments are speeding up solar, heat-pump and EV adoption as the Iran war and the Strait of Hormuz disruption turn energy security into a central policy goal.
Brent has hovered near $100 a barrel since late February—about 50% above prewar levels—while LNG flows through Hormuz remain far below normal, pushing up power and transport costs.
The Philippines illustrates the two-track response: fuel-tax cuts, free bus rides and more coal burn in the short term, alongside low-interest loans of up to 500,000 pesos for household clean energy and faster utility-scale renewables.
Asia is also falling back on coal as gas supplies tighten: Pakistan's power from imported gas fell more than 80% in April from a year earlier while imported-coal generation rose 27%; Japan's coal use for power is up 10%.
Europe's post-Ukraine playbook is spreading east, and cheaper Chinese exports of solar panels, batteries and EVs are emerging as a key enabler of a faster shift away from imported hydrocarbons.