RRenewable energy is a major focus for national governments and large corporations, especially in a context of increasing focus on tackling global climate change. This news update brought to you by Ideal Power offers a roundup of some of the most eye-catching headlines regarding renewable energy and the market opportunities associated with it.
This month, our update includes a study that offers a roadmap to halving emissions by 2030, a regional effort with federal government support to develop offshore wind in the United States and burgeoning plans to rapidly expand the country’s electric vehicle charging capacity. Each of these developments will be key to achieving the US Paris Climate Agreement goal of reducing greenhouse gas emissions by 50% by 2030.
Reaching emissions targets by 2030 is possible with help from renewables, study finds
The aggressive expansion of offshore wind power generation could come just in time. A recent study by researchers and policy analysts concluded that there are several pathways for the United States to reach its goal of reducing greenhouse gas emissions by 50% by 2030, a measure established in under the Paris Climate Agreement. However, these pathways all involve aggressive investment and the immediate development of even more renewable energy infrastructure.
“This study should reassure policymakers and other energy stakeholders, showing that everyone on the ground is pointing in the same direction. The case for clean energy is stronger than ever and our study shows that the 2030 emissions goal can be met,” wrote Nikit Abhyankar, one of the study’s authors and a scientist in the Department of Electricity Markets and Policy at Lawrence Berkeley National Laboratory.
“With the right policies and infrastructure, we can reduce our emissions, while saving American consumers billions of dollars and generating new jobs,” Abhyankar wrote. These policies include doubling renewable energy capacity every year, as well as a major shift to electric vehicles over the next eight years.
Other key findings of the report include:
- To halve global emissions, the United States must produce 80% of its electricity from renewable energy, double what it is today. In addition, the majority of new vehicle sales must be electric vehicles.
- Electrification of buildings and large industries must be a top priority to take advantage of the expansion of renewable energy generation.
- Coordinated policy between the states and the federal government will be needed to develop renewable energy infrastructure at a sufficiently rapid pace.
- Transitioning to clean energy would reduce air pollution, prevent up to 200,000 deaths per year, and reduce $800 billion in health and environmental costs through 2050.
“Since announcing the country’s emissions reduction pledge at the 2021 United Nations climate conference, the United States has taken steps in the right direction,” Abhyankar said. “But there is still a lot to be done. What we hope is that this study will give some level of blueprint for how this might be done.”
Feds, East Coast Governors Consider Offshore Wind Expansion
The White House recently announced a formal partnership to expand offshore wind infrastructure with the governors of 11 states along the East Coast. The aim of the agreement is to extend significant parts of the offshore wind supply chain from manufacturing facilities to ports. It also emphasizes workforce training and employment development to ensure that the labor market can support increased production and implementation of offshore wind technology. The partnership includes participation from the state governments of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania and Rhode Island.
The effort is a major boost to meeting President Joe Biden’s goal of increasing offshore wind power generation by 30 gigawatts by 2030. That would be enough electricity to power 10 million homes and, according to the White House, create 77,000 jobs and generate $12 billion a year. in private investment. The effort is already underway with two major projects approved in Massachusetts and New York, and 10 additional projects that would generate an additional 22 gigawatts of power currently under review by the Department of the Interior.
Plans to expand the country’s electric vehicle charging network are underway
Companies like Tesla (TSLA) always make headlines, and it’s big news that traditional automakers like General Motors (GM) and Ford (F) are also entering the fray. However, amid all the excitement surrounding electric vehicles, there is one major problem: the country’s electric vehicle charging network is too small and too slow.
According to CNBC, there are now approximately 2 million electric vehicle drivers in the United States, an increase of more than 600% since 2016. However, there are currently only 55,000 charging stations available for vehicles. electrical. An estimate by McKinsey and Company suggests that there must be 20 times more charging stations available to meet the growing demand for electric vehicles, or 1.2 million chargers.
In order to meet this need, automakers and startups are springing into action, and they will have help from the federal government. Earlier this year, the federal government secured $7.5 billion in funding under the bipartisan Infrastructure Act to invest in expanding the nation’s electric vehicle charging network. The goal is to add 500,000 more charging stations by 2030. The White House also released new standards for electric vehicle charging stations, which would require every charging station to be compatible with all-electric vehicles. .
Renewable energy industry poised for strong growth
Renewable energy is an area that is sure to grow, with strong market indicators and long-term adoption despite the current headwinds. A recent analysis by Allied Market Research estimated that the market value of the renewable energy industry will grow from $882 billion in 2020 to $2 trillion by 2030 as international energy systems are updated. to accommodate expanding renewable energy capacity. Deloitte predicts that key drivers of this growth include increased technological innovation, improved infrastructure development and lower costs for renewable energy technology. For renewable energy investors, a clean energy future could mean a major opportunity today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.