Renewables Expected to Overtake Coal by 2025
The world is in dire need of alternate energy sources that are clean and green. As the planet registers the highest temperatures on record, a sense of urgency has crept in the way the world deals with energy consumption. Governments across the globe are beginning to invest in clean and sustainable energy to limit the carbon pollution that is making our planet a hotter place. The importance of renewable energy cannot be overstated, as it is now expected to overtake coal by 2025 as the world’s largest source of electricity, a development that carries enormous significance for our planet.
The cost of generating electricity from the sun and wind has seen a considerable drop in its cost in a matter of years.
CREDIT: NYTimes
This revolutionary change is a commitment towards reducing the carbon footprint of our planet. Currently, clean energy is more affordable than gas, coal, or oil across many markets. More and more companies are investing in emerging green industries.
Private companies invested over $1.7 trillion worldwide in technologies such as electric vehicles, batteries, wind power, and solar power this year. The IEA predicts that it won’t stop here, and the investment in clean energy will only grow from here on.
Biden’s Clean Energy Bill And Red States
The clean energy transition being spurred by the Biden Administration has major wins for all states – blue and red. Yet, not all states are thankful for the thousands of jobs the Infrastructure Investment And Jobs Act is bringing their constituents.
Nearly 100 anti-ESG bills have already been filed in the US, surpassing last year’s total by more than double. Republican states pulled out $1 billion in assets from BlackRock due to its ESG investment policies. Recently, a coalition of Republican states urged a federal judge in Texas to invalidate a Biden administration rule granting retirement plans the ability to engage in socially conscious investing.
Cities previously known for their association with the oil and gas industry can now boast of the presence of companies flocking to them for their solar and wind power-related projects. An instance of that is Houston, a port city that is home to over 500 oil and gas companies, now has over 130 solar- and wind-related companies.
The US IRA, with a total allocation of US$370 billion, aims to provide clean energy incentives and tax credits. Surprisingly, despite no Republicans supporting it in Congress, red states are set to benefit the most from these funds.
When it comes to climate investments, Republican-led states are receiving more per person than Democrat-led states. The state of Wyoming leads the pack with a per-capita green investment of US$39,192.
The potential benefits of the IRA clean energy tax credits are significant. Texas could gain 100,000 new jobs and US$15 billion in GDP by 2030, while Florida could see 85,000 new jobs and US$10 billion in GDP.
Estimates from the White House project that red states could attract up to US$337 billion in investments for solar, wind, and storage projects, while Democrat-led states may generate roughly US$183 billion.
The positive impact of the IRA is evident. It could increase US GDP by up to US$200 billion and potentially create 1.3 million jobs nationwide by 2030. Currently, there have been US$250 billion in project announcements, creating opportunities for 140,000 new jobs. Moreover, over US$70 billion has been invested in 85 new manufacturing projects, generating nearly 57,000 jobs.
A scenario envisioning states adopting clean energy technologies at the necessary pace to meet 2030 climate goals reveals that red states would receive US$4,221 per capita compared to US$2,427 per capita for blue states.
Analysis by American Clean Power indicates that 80% of utility-scale wind or solar farms and battery projects in advanced development are located in red states.
Even Arkansas, a state better known for its oil and gas industry, is planning on building its biggest solar farm. The farm is expected to supply power to a $3 billion upgrade that the U.S. Steel factory is undergoing nearby. This is a clear indication that the world is moving towards clean and sustainable sources of energy.
CREDIT: NYTimes
Moreover, many entrepreneurs in Oklahoma are venturing into the clean energy sector. With the help of wind turbines and solar panels, these businesses aim to make renewable energy accessible to residents at an affordable cost.
In conclusion, it’s time to change the course! The world needs to reassess the way we’ve been dealing with energy consumption, and greater investment in renewable, clean energy sources is the need of the hour. Governments, as well as independent firms, the world over, understand the importance of renewable energy. The era of clean energy is upon us, and with it comes a more sustainable future for our planet. A future that the coming generations can call their own without worrying about the disastrous after-effects of global warming and pollution. The transition from coal to renewable energy is imminent, and we as citizens of this planet need to join hands towards making this change as smooth as possible.
