Energy Between Climate Imperatives and Economic Need

While renewable energy and its developments occupy the attention of those concerned with climate change and environmental safety, fossil fuels continue to be used alongside nuclear power to generate electricity. Despite the importance of curbing the greenhouse gas emissions that cause global warming and the resulting climate change, reliance on fossil fuels, namely coal, oil and gas, remains heavy due to the high density of the energy produced, making them an indispensable option for heavy industries that require large and stable energy supplies. As a result, fossil fuels still account for more than 70 percent of the global energy mix, according to the International Energy Agency, while their contribution to electricity generation exceeds roughly 60 percent. A report by the global energy company Eni (Eni's World Energy Review 2024) shows that four-fifths of last year's energy demand was met by fossil fuels, which grew at a rate of approximately 2 percent, representing nearly 80 percent of energy demand. Oil accounted for 30 percent of the energy mix, coal for 28 percent, and gas for 23 percent, despite a rise in the share of solar and wind power, which came in at less than 3 percent. Read also: Energy Security and Climate Security: Between the Virtue of Integration and the Vice of Separation (2 of 2). Nuclear power, meanwhile, still provides around 10 percent of the electricity the world needs and is the second-largest source of low-carbon electricity, despite the environmental risks posed by its radioactive waste, which requires advanced technologies and strict measures to ensure safe storage and processing. Nuclear power contributes to mitigating the effects of climate change, given that it is a low-emission source of thermal energy, making it impossible to achieve the decarbonization goals set by the Paris Climate Agreement without it. Technology Companies and the Turn to Nuclear Power. Notably, interest in generating electricity from nuclear power is not limited to states, but extends to private companies, particularly technology giants and artificial intelligence firms that have announced their need for nuclear energy to meet their massive and growing electricity demands. The development of generative artificial intelligence, which requires computers with immense capacity to process the information accumulated in massive databases, has been a major reason for these companies' increased need for additional power supplies. Microsoft, Google and Amazon signed, in less than a month, power supply contracts with a total capacity of 2.7 gigawatts, enough to power more than two million homes, and this entire capacity will be dedicated to meeting the growing consumption of facilities dedicated to storing data (Data Centers). The efforts of the technology giants fall within the framework of achieving carbon neutrality, as both Google and Microsoft have pledged to reach this goal in 2040, while Amazon has promised to achieve carbon neutrality by 2030. Read also: Europe Faces a Painful Choice: Trading Security for Climate. It should be noted that the three technology companies mentioned above still rely on renewable energies alongside fossil fuels. However, because renewable energy is intermittent, whereas data processing centers require reliable power around the clock, turning to nuclear energy has become an unavoidable choice. Yet nuclear power is unlikely to become available to these companies before 2027, and the timeframe will more likely extend to 2030, making continued reliance on fossil fuels for electricity generation inevitable. Oil-Producing Countries and Nuclear Power. Meanwhile, interest among oil-producing Gulf states in using nuclear power to generate electricity is growing, as the United Arab Emirates began generating electricity using nuclear power in August 2020 and is currently considering building additional reactors, both conventional and small reactors, and even investing internationally. Iran, meanwhile, began using nuclear power to generate electricity in 2013 from the Bushehr nuclear reactor, built by Russia on the northeastern coast of the Gulf. Saudi Arabia has sought, since 2010, to acquire civilian nuclear power. Since 2022, it has solicited bids from state-owned companies in Russia, China, France and South Korea to build its first nuclear reactor, and resumed discussions last April. It is worth noting that among the leading oil-producing countries using nuclear power to generate electricity are the United States, which has 92 nuclear reactors supplying 19.6 percent of its electricity needs, and Russia, which generated around 20 percent of its electricity needs through 37 nuclear reactors in 2021. Energy Sources and the Required Balance. Paradoxically, the transition to renewable and clean energy, despite the support it receives from most governments worldwide, still faces stiff competition from fossil fuels, which received a massive boost of support from US President Donald Trump. At the same time, interest is returning to nuclear power, whose cost is considered relatively low compared with renewable energy, especially with the emergence of next-generation small-scale reactor technology, known as small modular reactors (Small Modular Reactors, SMR). Read also: America Withdraws from the Climate Agreement and "Prosecutes" the IEA... Will IRENA's Turn Come? Despite the relative decline in the share of oil and coal in the global energy mix, offset by an increase in the share of gas, fossil fuels remain dominant over nuclear and renewable energy sources. Oil and gas together retain a share exceeding 53 percent, alongside a notable decline in coal's share, underscoring the urgent need for all types of fuel until further notice to meet growing global energy demand, particularly for electricity. Conclusion. In light of current data and trends, it is clear that the future of energy will not be confined to a single source, but will depend on a balanced combination within the energy mix that takes into account the requirements of economic growth, fairness in energy distribution, and environmental commitments. Between the pressures of climate change and the needs of the digital economy and heavy industries, and between carbon-neutrality ambitions and supply-security challenges, it has become essential to develop a multidimensional energy model that integrates renewable, nuclear and fossil-fuel energy in more efficient and sustainable ways. And if the future is heading toward greater reliance on electricity, securing this transition requires bold strategic decisions, massive investments in infrastructure, and international cooperation to share knowledge and technology. Ultimately, the question remains open before all humanity: how do we balance consumption and needs on the one hand with protecting the planet and sustaining life on it on the other? Researcher in economic affairs

Translated from Arabic with AI. Read it in Arabic