What would happen if the Strait of Hormuz is closed? A call to rethink our energy dependence

The Strait of Hormuz is one of those small pieces that support the entire global chessboard. Almost 20% of the oil consumed in the world transits through it. When the possibility of its closure is mentioned – as has happened again recently due to tensions between Iran and the United States – the markets tremble.

But why should this matter to us in Europe? Because, even though the conflict is thousands of miles away, its effects are felt directly in our electricity bill.

Global energy, local consequences

We already experienced this in 2021. In the midst of the post-COVID recovery, Europe faced one of the biggest energy crises in its recent history:

• The price of natural gas skyrocketed.
• Renewable generation decreased due to adverse weather conditions (less wind, for example).
• The European electricity system, being based on a marginalist market, set record prices: the wholesale cost of MWh in Spain went from around €40 in 2020 to more than €200 in autumn 2021.

The result? A historic rise in the price of electricity that affected both homes and businesses. It was a lesson in how vulnerable we are when we rely on external and unstable sources to meet our energy needs.

Spain’s solar paradox

Spain is one of the countries with the most hours of sunshine in Europe, but it is not yet one of the most energy self-sufficient. The potential is there. So are the resources. But the infrastructure for self-consumption and storage is not yet sufficiently widespread to shield us from crises such as the one that could be triggered by the closure of Ormuz.

Energy independence: more than an aspiration

It is not a matter of disconnecting from the grid, but of reducing our exposure to its fluctuations. True energy independence begins in every home, on every rooftop, in every company that decides to generate and manage part of the energy it consumes.

Faced with the ups and downs of the international market, the best defense is local generation. Because we have the resource: we do not lack sun. What we need is to install it.