- Jul 23, 2021 3:53 am GMT
Since the inauguration, the administration has come out with an energy agenda strongly in favor of renewables, with a goal of carbon-free power generation by 2035 and a net-zero carbon economy by 2050. President Biden has placed a moratorium on drilling on federal lands, launched a review of leasing and permitting for energy development on public lands and waters, and directed federal agencies to eliminate fossil fuel subsidies when possible.
- The transition to carbon-neutral generation and a carbon-neutral economy will happen, but it will be driven less by policymakers and more by feasibility and profitability.
- As technologies and strategies emerge that boost renewables and fill gaps in the market—from battery storage to carbon capture—the sector will follow those leads.
- For companies in the sector, these gaps will be driven by the desires of three core groups: investors, consumers and climate/ESG advocates. They are not mutually exclusive, but it does often put them in difficult situations.
THE CHANGING LANDSCAPE
- Despite the desire for a rapid crossover, replacing fossil fuels with renewables will be a massive undertaking to say the least.
- Even as wind and solar outstrips fossil fuel sources in terms of added generation capacity, the gap is immense.
- It will require adding or replacing over 200 billion kWh of renewable electricity production per year over the next 15 years.
- The challenges of this time horizon are nothing to discount. In Europe, it took 14 years to double the renewable capacity from 17% in 2005 to the 34% of generation accounted for in 2019.
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.