Opinion: Cold logic

A historic power blackout at the heart of the US energy system offers lessons into the complexity of the global transition that lies ahead

The power outages that hit Texas this week as a result of freezing weather offer a number of lessons about energy management, although perhaps not the ones some pundits and politicians have been reaching for. The irony of the biggest energy failure in recent US history happening in the state that has been synonymous with — and enriched by — the oil and gas industry is lost on nobody. But attempts to pin the blame for the crisis on the inadequacy of wind turbines are a blatant ruse aimed at making political mischief, and have been swiftly and correctly rebutted by state and federal energy officials.

Instead, the root of the failure lies in the way Texas has chosen to manage its electricity market, prioritising free-market flexibility over more costly reliability, and keeping itself separate from larger regional grids — and attendant federal oversight — that might have offered back-up supplies in its hour of need.

It will be cold comfort for the many Texans struggling this week with intermittent power and the need to boil water for drinking, but they are far from alone in dealing with energy access challenges. A winter freeze in north Asia in January drove regional LNG prices to record highs and left Japan facing the threat of blackouts, while this week's problems in Texas had a knock-on effect on gas and power availability for customers in Mexico.

And then there is the global energy system's greatest source of shame — that a trillion-dollar industry that has created unimaginable wealth for numerous companies and countries has not been able to deliver reliable access to energy, with all the poverty-alleviating effects that come with it, to all of the world's population. What many of Texas' 29mn residents have been dealing with for one week — lack of access to reliable electricity — remains, according to World Bank figures, a daily reality for almost 800mn people globally.

The problems in the southern US come against the backdrop of an increased global focus on tackling climate change and embracing lower-carbon energy — as Texas, home to more wind power capacity than most countries, has itself tried to do. But the real lessons from the state's difficulties relate to how the daunting complexity of the global energy transition should be managed.

First, the path through that transition needs to be guided by pragmatism, not ideology. Texas' extreme free market model clearly has flaws, but a system depending heavily on wind and solar would also have struggled. Second, energy storage is going to be key. That could mean different things in different places, but the world is likely to need many technologies to play a role. And third, connectivity — access to other options to manage demand surges and supply shortfalls — will need to be a priority.

At present, it is hard to imagine a low-carbon energy system replicating the ease with which fossil fuels can be moved around the world. But nor is it impossible. There is a clear requirement here for expansive thinking, to link up different technologies to resolve energy challenges that will vary from country to country. Above all, there is a need for the political courage to acknowledge that the transition will involve uncomfortable choices, and a rethink — by individuals, industries, communities and countries — of what is normal and sustainable. Blaming the Texas outages on wind power is not the best way to start.