"The closure of the Strait of Hormuz has triggered a sharp energy shock across Asia, with nearly 90% of oil and gas transported through the strait destined for the region. Asian policymakers now have to urgently rethink their energy strategies."
"The shift to coal is a short-term response to concerns about energy security. Asia is still deeply tied to fossil fuels, with power generation, transmission and financing built around coal, oil and gas."
"Governments know that any reliance on fossil fuels is a strategic vulnerability. Coal may be a readily available buffer for now, but the Iran war won't derail the transition to cleaner energy."
"Nuclear energy can provide the baseload generation needed to replace fossil fuels, as renewable energy sources alone won't suffice for stable electricity supply."
The closure of the Strait of Hormuz has caused significant energy disruptions in Asia, prompting countries like the Philippines, Japan, Thailand, and South Korea to turn to coal as a temporary solution. This shift is seen as a setback in emissions targets, but nuclear power is viewed as the long-term solution for stable electricity. While coal usage may rise in the short term due to energy security concerns, governments recognize the need to reduce reliance on fossil fuels to mitigate market volatility and transition to a diversified energy mix.
Read at Fortune
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