Euroviews. The Energy Transition’s Next Test Is Security
The Crisis That Spurred a Shift
Euroviews The energy transition s next – The recent disruption in energy flows through the Strait of Hormuz has sent shockwaves far beyond the oil and gas markets. The effects quickly spread to global shipping, industrial supply chains, and household bills, while intensifying inflationary and fiscal pressures. This event highlighted an urgent reality: for many nations, the energy transition is not just about sustainability but also about security and economic resilience. What was once seen as a gradual shift toward renewable energy now faces a critical evaluation of its ability to withstand disruptions.
Historically, the central focus of the energy transition debate centered on whether clean technologies could scale quickly enough to outpace fossil fuels. Over the past decade, this question has largely been answered in key sectors and regions. By 2025, renewables and nuclear had already accounted for 42% of global electricity usage, with renewable generation increasing by 9% and global clean energy investment reaching a historic $2.3 trillion. Yet, as the Hormuz crisis demonstrated, the next challenge is not merely about growth but about reliability and stability.
Reassessing the Priorities of Energy Transition
Now, the harder question is whether countries can establish energy systems that are both diversified and secure while maintaining affordability and sustainability. New research from the World Economic Forum suggests that many nations are struggling to achieve all three goals simultaneously. While progress in deploying clean energy has continued, the underlying factors sustaining this momentum—investment, infrastructure, policy consistency, and innovation—have come under increasing pressure.
“Energy security has become a more critical measure of success than ever before,” says the World Economic Forum. “The ability to maintain reliable systems amid geopolitical uncertainty defines a country’s resilience in the transition.”
The Hormuz crisis amplified these challenges, exposing vulnerabilities in global energy networks. Geopolitical tensions, infrastructure bottlenecks, and supply-chain concentration have grown more acute, pushing governments to rethink their strategies. This shift is reshaping the narrative around energy transitions, with security now taking precedence over speed and scale.
Diversification as a Strategic Imperative
Traditionally, energy progress was measured by the rate of deployment—how swiftly countries could expand renewable capacity, scale electric vehicles, or attract investment. Today, the focus has expanded to include the stability of energy systems. Governments are prioritizing infrastructure development, storage solutions, and a balance between external imports and domestic production to ensure long-term resilience.
China exemplifies this new approach. Despite still relying on imported fossil fuels and domestic coal, the nation is rapidly advancing its renewable energy initiatives. With wind and solar contributing 22% of its electricity generation, China is reducing its dependence on volatile energy markets. The significance of this strategy lies not only in the pace of deployment but in the long-term goal of creating an internally integrated energy system that mitigates risks from external shocks.
In Europe, the energy transition has taken on a dual purpose. Since Russia’s invasion of Ukraine, the continent has shifted its focus to strategic autonomy and competitiveness, alongside climate goals. Investments in grid modernization, storage solutions, hydrogen production, and domestic clean-technology manufacturing have surged. This approach aims to lessen reliance on potentially unstable imports, though the Hormuz disruption has underscored the scale of the challenge.
Regional Models and Global Implications
Brazil offers a compelling example of how greater resilience can be achieved through sustained investment and a clean domestic power mix. Decades of focus on biofuels have positioned the country to weather recent energy market volatility more effectively than many peers. Continued investment in ethanol, biodiesel, and sustainable aviation fuel is deepening this advantage, allowing Brazil to balance energy security with decarbonization efforts.
Japan, on the other hand, highlights another dimension of the resilience challenge: supply-chain security and technological innovation. Energy security now extends beyond fuels to include critical minerals, batteries, semiconductors, and grid equipment. Japan’s national rare metals stockpiling system provides a buffer against overseas supply disruptions, while its decades-long advancements in energy efficiency and innovation demonstrate how security can coexist with industrial capability.
The result is a model where resilience supports competitiveness rather than merely safeguarding against risk. Countries that can deliver reliable power from mixed sources, robust infrastructure, and secure supply chains are better positioned to attract investment and enhance industrial capacity. This ability to withstand disruptions has emerged as a strategic economic advantage, redefining the priorities of energy transitions worldwide.
As the global energy landscape evolves, the interplay between sustainability and security is becoming more complex. While the shift toward renewable energy has been impressive, it is now clear that the transition’s success depends on how well nations can adapt to uncertainties. The Hormuz crisis served as a wake-up call, forcing a reevaluation of energy strategies and emphasizing the need for diversified systems. This transformation is not just about reducing emissions but about ensuring that energy systems can function reliably under pressure.
For policymakers, this means moving beyond the deployment of renewables to address the broader ecosystem supporting them. Reliable grids, efficient storage, and resilient supply chains are now as crucial as the technologies themselves. The ability to maintain these systems amid geopolitical shifts, natural disasters, or market fluctuations will determine the long-term viability of energy transitions. This new era demands not only innovation but also strategic foresight and coordinated action across sectors.
Looking ahead, the energy transition is no longer a single path but a multifaceted journey. Each country’s unique approach—whether through large-scale renewable expansion, domestic manufacturing, or supply-chain diversification—offers valuable insights into how resilience can be built. The lessons from the Hormuz crisis and other events will shape future policies, ensuring that the transition is not only green but also secure and economically sustainable.
Ultimately, the energy transition’s next test is not just about replacing fossil fuels with cleaner alternatives. It is about creating systems that can withstand the shocks of an unpredictable world. As countries navigate this challenge, the integration of security into every stage of the transition will be key to its success. The path forward requires a balance of ambition and pragmatism, ensuring that the energy systems of tomorrow are both environmentally sound and resilient to the pressures of today.
