The Effect of Geopolitical Shifts on Energy Markets: An Analysis of the Economy of the Transition to Renewable Energy

Abstract

Global geopolitical shifts have posed significant challenges to the stability and sustainability of energy markets, particularly with the increasing reliance on fossil fuels and the emergence of the need to transition to renewable energy. Countries are now seeking to strengthen their energy security while navigating the economic impact of price fluctuations and supply risks. This study aims to analyze the impact of geopolitical changes on the energy market and evaluate economic readiness in switching to renewable energy. This research approach uses a qualitative-descriptive method with secondary data analysis from international energy reports and case studies of major energy-producing countries. Using comparative analysis techniques, the study identifies key trends in energy policy and details the economic factors affecting the energy transition, such as investment, regulation, and market stability. The results show that geopolitical shifts are driving the acceleration of renewable energy adoption, especially in countries directly affected by global energy tensions. However, there are major challenges related to initial investment costs, technology gaps, and adequate regulatory support. The study suggests the need for a flexible policy framework and international collaboration to support a sustainable energy transition