From Fukushima to Hormuz: Energy systems at a turning point

The blockade in the Strait of Hormuz has disrupted global oil supply and liquefied natural gas (LNG) transportation, adding momentum to structural changes in the energy system. Price volatility, fuel rationing and demand-based restrictions are reminding investors of the vulnerabilities exposed following the Fukushima nuclear accident in 2011, although this time around, economies are more ready to turn away from fossil fuels. Fukushima changed how Japan and parts of Europe thought about their power options, and the Hormuz crisis is doing similar today. The war in Ukraine also highlighted vulnerabilities...