The world is at a crossroads in its approach to energy, propelled by economic shifts and geopolitical tensions. This transformation is reshaping not only the sources of energy but also the ownership and delivery mechanisms.
This transition has advanced beyond initial discussions and debates about mitigating severe climate outcomes such as the disappearance of coral reefs, rising sea levels, and extreme weather events.
The geopolitical situation in Iran and the closure of the Strait of Hormuz have significantly altered the conversation.
While environmental goals like maintaining global temperature rise below 1.5 degrees Celsius remain crucial, the current focus has shifted to securing a sufficient, preferably clean, energy supply. This has elevated energy security to a national security issue, transcending traditional threats. In energy discussions, this is often referred to as “energy sovereignty.”
Countries and entities resisting this energy shift face not only increased electricity costs but also the economic pressures of inflation and fluctuating oil prices. The cost of goods and services is now influenced by global conflicts, beyond local policy or supply chain stability.
This raises pertinent questions: Will the conflict involving the United States and Israel in Iran accelerate the move towards renewable energy? Are markets recognizing that oil and natural gas, once seen as stable energy sources, have become unpredictable geopolitical tools due to their concentration in North America and the volatile Middle East?
Geopolitical weapon. Experts suggest that oil has transitioned from a mere commodity to a geopolitical tool. Just before the onset of conflict in Iran, J.P. Morgan anticipated a downturn in the global oil price benchmark, Brent. They noted, “These events typically lead to a substantial spike in oil prices, averaging a 76 percent increase from onset to peak.” (source).
The conflict has caused a global surge in energy prices, with the Philippines experiencing a threefold increase last month. In a nation with the second-highest electricity rates in Asia, energy independence is becoming essential to protect household budgets from international crises.
A sustainable path forward, relying on abundant clean energy, offers the best chance for stable energy pricing over the long term.
According to the World Resources Institute’s April 2026 analysis, “Clean Energy is Secure Energy.” The report highlights that events like the Iranian conflict and the Strait of Hormuz blockade underscore fossil fuels as a “geopolitical liability.” (source).
Beyond environmental and health benefits, clean energy systems offer significant price stability and domestic resilience. The World Resources Institute stated, “Clean energy can fuel national security—because no Strait of Hormuz can blockade the wind, sun, water, or Earth’s own heat.”
If the Philippines had invested in renewables like China and expanded solar access like Pakistan, it might have been insulated from the effects of the oil supply blockade.
Distributed solar PVs boom. To shield itself from fuel shortages, Pakistan has expanded its use of distributed solar photovoltaics (solar rooftops). This growth has significantly reduced their reliance on natural gas for electricity, particularly during the day. The country’s solar expansion saved $12 billion in oil and gas imports even before the Iran conflict began, according to the World Resources Institute.
In contrast, in the Philippines, power distributors are opposing unregulated rooftop solar installations, calling for stricter regulations, while consumers face soaring electricity bills.
The need for decentralizing power generation in the Philippines is evident, allowing households to adopt renewable energy systems that may not require grid connection or favorable net metering programs that enable customers to sell excess power back to the grid.
Original Story at opinion.inquirer.net