According to the Globe Economic Forum ETI, the world has achieved steady, albeit moderate, progress on its energy transformation journey over the last decade. Forward motion, however, should be lauded.
The need for revolutionary solutions to combat climate change has intensified. Over the last three years, a succession of systemic disruptions has had a severe impact on national and geographic energy networks.
The COVID-19 epidemic caused energy supply-demand mismatches, which have recently been exacerbated by the Ukraine war. As a result of the consequent energy market volatility, energy prices have skyrocketed, adversely hurting both individuals and companies.
According to the most recent ACP study, the United States today has more than 200 GW of clean power capacity. Non-utility buyers also led PPA commitments in 2021 for the first time, accounting for 57 percent of clean power purchase contracts. On the other hand, Amazon, and TotalEnergies were the top three corporate buyers of sustainable energy in 2021.
Nonetheless, the CPAM Report 2021 projected that renewable energy deployment will be stagnant between 2020 and 2021. According to ACP, if last year’s rate holds, the United States will only deliver 35% of the renewable power needed to fulfill its net-zero aim by 2035.
In 2021, Texas led the nation in sustainable energy installations. California took second place with 2,852 MW deployed, followed by Oklahoma and Florida. According to the research, seven states developed more than 1 GW of additional renewable electricity capacity in 2021.
According to ACP CEO Heather Zichal, instability in 2022 is fuelled by postponed extensions to green power tax credits, supply restrictions imposed by the Department of Commerce’s examination into Southeast Asian imports, and hyperinflation.
The examination might result in taxes ranging from 50 to 250 percent on modules shipped from Southeast Asia, where the United States receives more than 80 percent of its module inventory. However, Commerce Secretary Gina Raimondo has worked to address fears that her agency will impose the worst penalty.
Moreover, energy supply-demand mismatches may become a recurring phenomenon when energy networks reorganize themselves to be low-carbon. These inequalities, as well as the high energy costs that frequently accompany them, have an impact on universal energy availability and affordability for individuals and industries.
According to the ETI, twofold diversification (of power supply and supply balance) is critical to enhancing energy security. Globally, 103 countries are considered as having insufficient energy supply diversification.
Regulations and policies that support and accelerate the transition to renewable energy are critical. At the moment, not all regulatory frameworks are strong enough to motivate the essential actions and investments.