Volatile oil prices show why renewables can't wait

10 March 2026

Faculty of Engineering and Design, Business and economy, Education and society, Sustainable impact

At a glance

• Big swings in oil prices and global conflicts show the risks of relying on fossil fuels and why we need steadier energy sources like geothermal, solar, and wind.
• Renewables improve energy security, cut pollution, and create skilled local jobs, offering long-term advantages over oil.
• Strong policy, fair carbon pricing and steady investment are key to accelerating the transition to a low-carbon future.
  

Oil prices nearly doubled earlier this month due to conflict in the Middle East, before falling again just as sharply. As the conflict continues, they're still subject to fluctuate, pushing up fuel costs, creating uncertainty around inflation, and further exposing New Zealand to global market shocks.

Dr Sadiq Zarrouk, an associate professor of geothermal engineering, says this volatility should prompt the country to rethink its energy future - and look more closely at renewable energy.

"When conventional energy becomes more expensive, renewables such as solar, wind, and particularly geothermal energy become comparatively more attractive," he says.

"It should push companies to scale up cleaner technologies and reduce dependence on markets that can change overnight. Renewable resources are steady and locally available.

"They also reduce greenhouse-gas emissions, help protect ecosystems, support social well-being, and reduce health impacts from pollution."

Zarrouk notes that renewables also strengthen energy security by diversifying supply and reducing dependence on imported fuels.

He adds high upfront costs, long permitting processes, and uncertainty around policy have slowed progress so far. But additional incentives could help fast-track projects and make marginal developments more viable.

"Oil and other fossil fuel reserves are limited and will run out unless we keep discovering more, while renewable energy regenerates. It has the potential to replace fossil fuels in the future," he says.

"Stable, long-term policy gives investors the confidence to commit to major clean-energy projects. Diversifying our energy sources will make New Zealand's system cleaner, more secure, and far less vulnerable to global shocks."

Media contact

Media adviser | Jogai Bhatt
M: 027 285 9464
E: [email protected]

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