Global renewable energy development will accelerate under high oil prices

Recently, international oil prices have continued to fluctuate at high levels.The high international oil price will boost the global oil and gas exploration and production industry, and will also promote the increase of domestic oil reserves and production.

At the same time, rising international oil prices may lead to the acceleration of global renewable energy development and accelerate the pace of global energy transformation.

Since nearly 200 countries around the world adopted the Paris Agreement in 2015, addressing climate change has become the consensus of the international community, and the policy orientation of promoting green development globally and replacing traditional fossil energy with low-carbon and clean energy will not change.

In recent years, the prices of photovoltaic and wind power generation equipment have dropped rapidly, and the conditions for grid parity have been met. The cost per kilowatt-hour of photovoltaic and wind power has become very competitive in the world. The entire industry has entered a period of rapid penetration, and rising oil prices will accelerate new Energy substitutes for traditional fossil energy such as petroleum.

Rising crude oil prices will speed up the promotion of new energy vehicles.

Statistics from the International Renewable Energy Agency show that since 2012, the annual new installed capacity of clean energy in the world has exceeded the sum of the new installed capacity of various types of fossil energy; more than four times.

Deloitte's research believes that the intermittent, fluctuating, random and other characteristics of renewable energy put forward higher requirements for the operation, scheduling and control of the energy network, and it is necessary to establish an energy system that integrates source, network, load and storage to ensure safe and reliable energy supply; Fossil energy has been transformed from primary energy to auxiliary regulating energy. The clean and efficient utilization of fossil energy as a backup guarantee for energy security will effectively reduce the risk of the energy system.The global oil and gas market has undergone tremendous changes as the world's major economies have set their net-zero goals clear, but the special role of oil remains irreplaceable.

From the perspective of the trend of China's energy transformation, the proposal of the "dual carbon" goal indicates that the green and low-carbon transformation of my country's energy structure is an inevitable trend.

China will develop both centralized and distributed wind power and photovoltaics, and optimize the power supply structure; improve the grid connection friendliness of new energy through the combined operation of wind-solar storage and photovoltaic-storage; accelerate the flexibility transformation of coal-fired units, and promote the role of fossil energy from primary energy to

Adjustment-oriented energy transformation, strictly control new coal-fired production capacity, phase out some coal-fired units, and use coal-fired power plants equipped with CCUS (carbon capture, utilization and storage) technology as a supplement to renewable energy for peak shaving.

With the market-oriented reform of the energy industry, the price mechanism has become an important force in promoting energy transformation.At present, the continuous rise of international oil prices, the high domestic coal prices and the rapid decline in the cost of new energy power generation have all become important driving forces for the green and low-carbon transformation of energy.