--- title: "The energy crisis escalates, will the photovoltaic and battery industries become the biggest winners?" type: "News" locale: "en" url: "https://longbridge.com/en/news/277993646.md" description: "The Middle East conflict disrupts the global oil and gas market, and in extreme cases, oil prices could rise to $108 per barrel, pushing up inflation. Historically, surges in energy prices have often forced countries to pay higher fuel costs, but as solar and battery prices continue to decline, more and more countries are accelerating their transition to renewable energy. Analysts believe that if oil and gas supplies remain disrupted, global demand for clean technologies such as photovoltaics and batteries may further increase" datetime: "2026-03-05T22:50:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277993646.md) - [en](https://longbridge.com/en/news/277993646.md) - [zh-HK](https://longbridge.com/zh-HK/news/277993646.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277993646.md) | [繁體中文](https://longbridge.com/zh-HK/news/277993646.md) # The energy crisis escalates, will the photovoltaic and battery industries become the biggest winners? Media reports indicate that amid severe disruptions to the oil and gas markets due to the Middle East war, if attacks on energy infrastructure increase further, it is estimated that crude oil prices could rise to $108 per barrel, significantly boosting inflation and potentially pushing some European economies to the brink of recession. This price shock will have global implications. In the last century, when similar price surges occurred, countries reliant on imports had little choice but to pay higher prices or reduce fuel usage. **However, in this century, the decline in solar and battery prices has provided an alternative.** Antoine Vagneur-Jones, head of trade and supply chains at Bloomberg New Energy Finance, told the media: > “When a technology becomes cost-competitive, the adoption rate reaches a critical point.” ## Acceleration of Europe’s New Energy Transition The media states that Europe is a typical example. After the outbreak of the Russia-Ukraine conflict four years ago, Europe fell into a gas crisis. At the onset of the crisis, the region had to purchase any available liquefied natural gas at exorbitant prices. However, in the following years, Europe’s solar installation capacity grew rapidly, followed by a surge in battery deployment. Despite the fact that government debt levels in European countries have surpassed heights not seen since World War II, they still possess sufficient capital for the upfront investments required for installing solar panels and batteries. Meanwhile, they are also able to bear higher gas prices before these new energy facilities become operational. In contrast, the impact of the 2022 crisis has been much more severe for developing countries. Pakistan, Bangladesh, and Sri Lanka have all experienced severe power outages because these countries simply cannot afford liquefied natural gas supplies. Unlike China and India, these countries have almost no domestic coal resources to rely on. As a result, some businesses and households in Pakistan that can afford solar panel costs have begun purchasing equipment from China. The demand has grown so rapidly that by 2024, Pakistan is expected to become the fourth largest importer of solar panels globally, following the United States, India, and Brazil. Similar to Europe, after a year of surging solar installations, battery installations have also increased rapidly. ## Analysts: If Oil and Gas Disruptions Persist, Customers Will Turn to New Energy The media reports that solar and batteries cannot replace the oil used in existing internal combustion engine vehicles, nor can they substitute for the natural gas used in the chemical industry. Furthermore, in major economies like Germany, the recent sharp rise in gas market prices has so far had a limited impact on electricity prices. If gas prices do not continue to rise, the impetus to shift to cleaner alternative energy will not be as strong. In the past, developing countries found it difficult to build capital-intensive renewable energy projects due to a lack of financing channels. However, the situation has changed, as significant demand for solar and batteries in Pakistan and Cuba is coming directly from consumers. Additionally, Chinese solar and battery manufacturers are seeking new markets and offering more attractive prices. Last year, global solar installation capacity reached a record 655 gigawatts. Before the outbreak of the Iran war, analysts expected solar growth to remain roughly flat this year, while grid energy storage is expected to grow by over 50%, as battery prices are anticipated to decline further Analysts indicate that this trend may change if disruptions in oil and gas supply persist. The report also notes that there is currently an ample supply of green technology inventory, making it unlikely for severe bottlenecks in the supply chain to occur. > "This could drive customers to shift towards technologies such as solar energy and batteries." ### Related Stocks - [GF CNI New Energy Vehicle Battery ETF (159755.CN)](https://longbridge.com/en/quote/159755.CN.md) - [Huatai-PB CSI Photovoltaic Industry ETF (515790.CN)](https://longbridge.com/en/quote/515790.CN.md) - [Ping An CSI Photovoltaic Industry ETF (516180.CN)](https://longbridge.com/en/quote/516180.CN.md) - [E Fund CSI Photovoltaic Industry ETF (562970.CN)](https://longbridge.com/en/quote/562970.CN.md) - [China Universal CSI Photovoltaic Industry ETF (516290.CN)](https://longbridge.com/en/quote/516290.CN.md) - [Penghua SSE STAR New Energy ETF (588830.CN)](https://longbridge.com/en/quote/588830.CN.md) - [Invesco Solar ETF (TAN.US)](https://longbridge.com/en/quote/TAN.US.md) - [Yinhua CSI Photovoltaic Industry ETF (516880.CN)](https://longbridge.com/en/quote/516880.CN.md) - [Global X Solar ETF (RAYS.US)](https://longbridge.com/en/quote/RAYS.US.md) - [Amplify Lithium & Battery Tech ETF (BATT.US)](https://longbridge.com/en/quote/BATT.US.md) - [Global X Lithium & Battery Tech ETF (LIT.US)](https://longbridge.com/en/quote/LIT.US.md) - [iShares Global Clean Energy ETF (ICLN.US)](https://longbridge.com/en/quote/ICLN.US.md) - [GF CSI Photovoltaic faucet Leading 30 ETF (560980.CN)](https://longbridge.com/en/quote/560980.CN.md) - [ChinaAMC Green Electricity ETF (562550.CN)](https://longbridge.com/en/quote/562550.CN.md) - [China Universal CSI Battery Theme ETF (159796.CN)](https://longbridge.com/en/quote/159796.CN.md) ## Related News & Research - [The 2026 Kia EV6 GT Is Not Coming To The U.S.](https://longbridge.com/en/news/277903963.md) - [EIA: 62% more renewable energy capacity is coming in 2026](https://longbridge.com/en/news/277086397.md) - [11:48 ETNew Energy Equity Brings Moriah Community Solar Project Online, Delivering Energy and Economic Benefits to the Adirondack Region](https://longbridge.com/en/news/277498559.md) - [In Iran, US President Donald Trump Makes The Case For Renewable Energy, Again](https://longbridge.com/en/news/277494642.md) - [Canada's Capital Power reports Q4 loss versus year-ago profit](https://longbridge.com/en/news/277780475.md)