Global Energy Transition Hampered by Trade Wars and Political Interference
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The global shift towards clean energy is facing significant headwinds, as escalating trade tensions and increasing political meddling threaten to derail progress towards accessible and affordable electricity worldwide.This assessment comes from a leading voice in the renewable energy sector, the founder and chairman of Saudi Arabia’s ACWA Power, speaking at the Fortune Global Forum in Riyadh.
The need for a diversified energy portfolio – encompassing solar, wind, battery storage, alongside conventional sources like fossil fuels and nuclear power – was a central theme of discussions, with a focus on ensuring secure, clean, and affordable energy access for all. However, the interconnectedness of the global energy landscape was repeatedly emphasized. “There’s no one country that does not need the others,” the official continued. “We are all human on this Earth. We need to work together, we need to have integration, and we need to think about how we create something that’s good for all our people on this Earth.”
China’s Dominance and the Need for Collaboration
Despite the challenges, the energy transition is still being driven forward, largely thanks to China’s leadership.ACWA Power is currently developing the world’s largest green hydrogen project, the NEOM Green Hydrogen Project, slated for completion in 2027, and is 50% owned by the Saudi sovereign wealth fund. The company has expanded into a major player in renewable energy and water desalination across Saudi arabia, Asia, and Africa, including strategic partnerships with Chinese entities like the China Southern Power Grid, which holds a stake in several of ACWA’s Asian wind subsidiaries.
“If there is no China, there is no energy transition,” a company representative asserted, praising “Chinese innovation” and its control over critical supply chains for wind turbines, solar panels, and battery components. The scale, competitiveness, and solutions offered by china are vital to accelerating the global shift to cleaner energy sources.
Middle Eastern Nations Embrace Renewables
The commitment to renewable energy isn’t limited to traditional leaders in the sector. Countries in the Middle East, historically major oil exporters, are also actively investing in renewables. Abu Dhabi-based Masdar, such as, is spearheading the transition to renewables within the United Arab Emirates. The UAE aims to generate 50% of its electricity from renewable sources by 2030, with projects like its 1 gigawatt “round-the-clock” renewable energy project – combining solar power and battery storage with AI-powered management – leading the way.
“We can now control the power of the sun,” explained a Masdar executive. “We store during the day, and we generate during the day, and then we dispatch during the night. This could be a blueprint and replicated elsewhere.”
Diversification and Smart Grid Integration are Key
The need for a diversified approach was further underscored by the CEO of Engie, a multinational utility giant. While Engie is heavily investing in renewables, the CEO cautioned against relying solely on solar farms, emphasizing the importance of a reliable and efficient energy grid. “It’s not going to be one technology saving the world,” she stated. “It’s the very smart integration, technology-based smart grid that is going to be the solution on the power side.”
Ultimately, the focus must remain on maximizing the “greenness” of new electricity generation, leveraging the most appropriate low-carbon sources for each region. “We are more confident than ever that we’re pointing in the right direction with the caveat that the projects have to be good projects,” the CEO concluded. “you need to provide the right electrons at the right times. The electricity that you produce has to have the right profile that customers need.”
