Hitachi Energy to accelerate sustainable mobility in Germany's biggest city

Clean Electricity Standard drives Biden's infrastructure, grid decarbonization, and utility mandates, leveraging EPA regulation, renewables, nuclear, and carbon capture via reconciliation to reach 80% clean power by 2030 amid partisan Congress.

Key Points

A federal mandate to reach 80% clean U.S. power by 2030 using incentives and EPA rules to speed grid decarbonization.

✅ Targets 80% clean electricity by 2030 via Congress or reconciliation

✅ Mix of renewables, nuclear, gas with carbon capture allowed

✅ Backup levers: EPA rules, incentives, utility planning shifts

The true measure of President Biden’s climate ambition may be the clean electricity standard he tucked into his massive $2.2 trillion infrastructure spending plan.

Its goal is striking: 80% clean power in the United States by 2030.

The details, however, are vague. And so is Biden’s plan B if it fails—an uncertainty that’s worrisome to both activists and academics. The lack of a clear backup plan underscores the importance of passing a clean electricity standard, they say.

If the clean electricity standard doesn’t survive Congress, it will put pressure on the need to drive climate policy through targeted spending, said John Larsen, a power system analyst with the Rhodium Group, an economic consulting firm.

“I don’t think the game is lost at all if a clean electricity standard doesn’t get through in this round,” Larsen said. “But there’s a difference between not passing a clean electricity standard and passing the right spending package.”

In his few months in office, Biden has outlined plans to bring the United States back into the international Paris climate accord, pause oil and gas leasing on public lands, boost the electric vehicle market, and target clean energy investments in vulnerable communities, including plans to revitalize coal communities across the country, most affected by climate change.

But those are largely executive orders and spending proposals—even as early assessments show mixed results from climate law—and unlikely to last beyond his administration if the next president favors fossil fuel usage over climate policy. The clean electricity standard, which would decarbonize 80% of the electrical grid by 2030, is different.

It transforms Biden’s climate vision from a goal into a mandate. Passing it through Congress makes it that much harder for a future administration to undo. If Biden is in office for two terms, the United States would see a rate of decarbonization unparalleled in its history that would set a new bar for most of the world’s biggest economies.

But for now, the clean electricity standard faces an uncertain path through Congress and steep odds to getting enacted. That means there’s a good chance the administration will need a plan B, observers said.

Exactly what kind of climate spending can pass Congress is the very question the White House and congressional Democrats will be working on in the next few months, including upgrades to an aging power grid that affect renewables and EVs, as the infrastructure bill proceeds through Congress.

Negotiations are fraught already. Congress is almost evenly split between a party that wants to curtail the use of fossil fuels and another that wants to grow them, and even high energy prices have not necessarily triggered a green transition in the marketplace.

Senate Minority Leader Mitch McConnell (R-Ky.) said last week that “100% of my focus is on stopping this new administration.” He made similar comments at the start of the Obama administration and blocked climate policy from getting through Congress. He also said last week that no Republican senators would vote for Biden’s infrastructure spending plan.

A clean electricity standard has been referred to as the “backbone” of Biden’s climate policy—a way to ensure his policies to decarbonize the economy outlast a future president who would seek to roll back his climate work. Advocates say hitting that benchmark is an essential milestone in getting to a carbon-free grid by 2035. Much of President Obama’s climate policy, crafted largely through regulations and executive orders, proved vulnerable to President Trump’s rollbacks.

Biden appears to have learned from those lessons and wants to chart a new course to mitigate the worst effects of climate change. He’s using his majority in the House and Senate to lock in whatever he can before the 2022 midterms, when Democrats are expected to lose the House.

To pass a clean electricity standard, virtually every Democrat must be on board, and even then, the only chance of success is to pass a bill through the budget reconciliation process that can carry a clean electricity standard. Some Senate Democrats have recently hinted that they were willing to split the bill into pieces to get it through, while others are concerned that although this approach might win some GOP support on traditional infrastructure such as roads and bridges, it would isolate the climate provisions that make up more than half of the bill.

The most durable scenario for rapid electricity-sector decarbonization is to lock in a bipartisan clean electricity standard into legislation with 60 votes in the Senate, said Mike O’Boyle, the director of electricity policy for Energy Innovation. Because that’s highly unlikely—if not impossible—there are other paths that could get the United States to the 80% goal within the next decade.

“The next best approach is to either, or in combination, pursue EPA regulation of power plant pollution from existing and new power plants as well as to take a reconciliation-based approach to a clean electricity standard where you’re basically spending federal dollars to provide incentives to drive clean electricity deployment as opposed to a mandate per se,” he said.

Either way, O’Boyle said the introduction of the clean electricity standard sets a new bar for the federal government that likely would drive industry response even if it doesn’t get enacted. He compared it to the Clean Power Plan, Obama’s initiative to limit power plant emissions. Even though the plan never came to fruition, because of a Clean Power Plan rollback, it left a legacy that continues years later and wasn’t negated by a president who prioritized fossil fuels over the climate, he said.

“It never got enacted, but it still created a titanic shift in the way utilities plan their systems and proactively reposition themselves for future carbon regulation of their electricity systems,” O’Boyle said. “I think any action by the Biden administration or by Congress through reconciliation would have a similar catalytic function over the next couple years.”

Some don’t think a clean electricity standard has a doomed future. Right now, its provisions are vague. But they can be filled in in a way that doesn’t alienate Republicans or states more hesitant toward climate policy, said Sally Benson, an engineering professor at Stanford University and an expert on low-carbon energy systems. The United States is overdue for a federal mandate that lasts through multiple administrations. The only way to ensure that happens is to get Republican support.

She said that might be possible by making the clean electricity standard more flexible. Mandate the goals, she said, not how states get there. Going 100% renewable is not going to sell in some states or with some lawmakers, she added. For some regions, flexibility will mean keeping nuclear plants open. For others, it would mean using natural gas with carbon capture, Benson said.

While it might not meet the standards some progressives seek to end all fossil fuel usage, it would have a better chance of getting enacted and remaining in place through multiple presidents, she said. In fact, a clean electricity standard would provide a chance for carbon capture, which has been at the center of Republican climate policy proposals. Benson said carbon capture is not economical now, but the mandate of a standard could encourage investments that would drive the sector forward more rapidly.

“If it’s a plan that people see as shutting the door to nuclear or to natural gas plus carbon capture, I think we will face a lot of pushback,” she said. “Make it an inclusive plan with a specific goal of getting to zero emissions and there’s not one way to do it, meaning all renewables—I think that’s the thing that could garner a lot of industrial support to make progress.”

In addition to industry, Biden’s proposed clean electricity standard would drive states to do more, said Larsen of the Rhodium Group. Several states already have their own version of a clean energy standard and have driven much of the national progress on carbon emissions reduction in the last four years, he said. Biden has set a new benchmark that some states, including those with some of the biggest economies in the United States, would now likely exceed, he said.

“It is rare for the federal government to get out in front of leading states in clean energy policy,” he said. “This is not usually how climate policy diffusion works from the state level to the federal level; usually it’s states go ahead and the federal government adopts something that’s less ambitious.”

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Sicily Green Hydrogen accelerates decarbonization via renewable energy, wind farm electrolysis, hydrogen storage, and distribution from Enel Green Power and Sapio at the NextHy industrial lab in Carlentini and Sortino Sicily hub.

Key Points

Sicily Green Hydrogen is an Enel-Sapio plan to produce hydrogen via wind electrolysis for industrial decarbonization.

✅ 4 MW electrolyzer powered by Carlentini wind farm

✅ Estimated 200+ tons annual green H2 production capacity

✅ Market distribution managed by Sapio across Sicily

This green hydrogen will be produced at the Sicilian industrial plant, an innovative hub that puts technology at the service of the energy transition, echoing hydrogen innovation funds that support similar goals worldwide

Activating a supply of green hydrogen produced using renewable energy from the Carlentini wind farm in eastern Sicily is the focus of the agreement signed by Enel Green Power and Sapio. The agreement provides for the sale to Sapio of the green hydrogen that will be produced, stored in clean energy storage facilities and made available from 2023 at the Carlentini and Sortino production sites, home to Enel Green Powers futuristic NextHy innitiative. Sapio will be responsible for developing the market and handling the distribution of renewable hydrogen to the end customer.

In contexts where electrification is not easily achievable, green hydrogen is the key solution for decarbonization as it is emission-free and offers a potential future for power companies alongside promising development prospects, commented Salvatore Bernabei, CEO of Enel Green Power. For this reason we are excited about the agreement with Sapio. It is an agreement that looks to the future by combining technological innovation and sustainable production.

Sapio is strongly committed to contributing to the EUs achievement of the UN SDGs, commented Alberto Dossi, President of the Sapio Group, and with this project we are taking a firm step towards sustainable development in our country. The agreement with EGP also gives us the opportunity to integrate green hydrogen into our business model, as jurisdictions propose hydrogen-friendly electricity rates to grow the hydrogen economy, which is based on our strong technological expertise in hydrogen and its distribution over 100 years in business. In this way we will also be able to give further support to the industrial activities we are already carrying out in Sicily.

The estimated 200+ tons of production capacity of the Sicilian hub is the subject of the annual supply foreseen in the agreement. Once fully operational, the green hydrogen will be produced mainly by a 4 MW electrolyzer, which is powered exclusively by the renewable energy of the existing wind farm, and to a lesser extent by the state-of-the-art electrolysis systems tested in the platform. Launched by Enel Green Power in September 2021, NextHys Hydrogen Industrial Lab is a unique example of an industrial laboratory in which production activity is constantly accompanied by technological research. In addition to the sectors reserved for full-scale production, there are also areas dedicated to testing new electrolyzers, components such as valves and compressors, and innovative storage solutions based on liquid and solid means of storage: in line with Enels open-ended approach, this activity will be open to the collaboration of more than 25 entities including partners, stakeholders and innovative startups. The entire complex is currently undergoing an environmental impact assessment at the Sicily Regions Department of Land and Environment.

It is an ambitious project with a sustainable energy source at its heart that will be developed at every link in the chain: thanks to the agreement with Sapio, in fact, at NextHy green hydrogen will now not only be produced, stored and moved on an industrial scale, but also purchased and used by companies that have understood that green hydrogen is the solution for decarbonizing their production processes. In this context, this experimental approach that is open to external contributions will allow the Enel Green Power laboratory team to test the project on an industrial scale, so as to create the best conditions for a commercial environment that can make the most of all present and future technologies for the generation, storage and transport of green hydrogen, including green hydrogen microgrids that demonstrate scalable integration. It is an initiative consistent with Enels Open Innovability spirit: meeting the challenges of the energy transition by focusing on innovation, ideas and their transformation into reality.

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Vineyard Wind Offshore Wind Farm delivers clean power to Massachusetts near Martha's Vineyard, with 62 turbines and 800 MW capacity, advancing renewable energy, cutting carbon, lowering costs, and driving net-zero emissions and green jobs.

Key Points

An 800 MW Massachusetts offshore project of 62 turbines supplying clean power to 400,000+ homes and cutting emissions.

✅ 800 MW powering 400,000+ MA homes and businesses

✅ 62 turbines, 13 MW each, 15 miles from Martha's Vineyard

✅ Cuts 1.6M tons CO2 annually; boosts jobs and port infrastructure

The crisp Atlantic air off the coast of Martha's Vineyard carried a new melody on February 2nd, 2024. Five colossal turbines, each taller than the Statue of Liberty, began their graceful rotations, marking the historic moment power began flowing from Vineyard Wind, the first large-scale offshore wind farm in the United States, enabled by Interior Department approval earlier in the project timeline. This momentous occasion signifies a seismic shift in Massachusetts' energy landscape, one that promises cleaner air, lower energy costs, and a more sustainable future for generations to come.

Nestled 15 miles southeast of Martha's Vineyard and Nantucket, Vineyard Wind is a colossal undertaking. The project, a joint venture between Avangrid Renewables and Copenhagen Infrastructure Partners, will ultimately encompass 62 turbines, each capable of generating a staggering 13 megawatts. Upon full completion later this year, Vineyard Wind will power over 400,000 homes and businesses across Massachusetts, contributing a remarkable 800 megawatts to the state's energy grid.

But the impact of Vineyard Wind extends far beyond mere numbers. This trailblazing project holds immense environmental significance. By harnessing the clean and inexhaustible power of the wind, Vineyard Wind is projected to annually reduce carbon emissions by a staggering 1.6 million metric tons – equivalent to taking 325,000 cars off the road. This translates to cleaner air, improved public health, and a crucial step towards mitigating the climate crisis.

Governor Maura Healey hailed the project as a "turning point" in Massachusetts' clean energy journey. "Across the Commonwealth, homes and businesses will now be powered by clean, affordable energy, contributing to cleaner air, lower energy costs, and pushing us closer to achieving net-zero emissions," she declared.

Vineyard Wind's impact isn't limited to the environment; it's also creating a wave of economic opportunity. Since its inception in 2017, the project has generated nearly 2,000 jobs, with close to 1,000 positions filled by union workers thanks to a dedicated Project Labor Agreement. Construction has also breathed new life into the New Bedford Marine Commerce Terminal, with South Coast construction activity accelerating around the port, transforming it into the nation's first port facility specifically designed for offshore wind, showcasing the project's commitment to local infrastructure development.

"Every milestone on Vineyard Wind 1 is special, but powering up these first turbines stands apart," emphasized Pedro Azagra, CEO of Avangrid Renewables. "This accomplishment reflects the years of dedication and collaboration that have defined this pioneering project. Each blade rotation and megawatt flowing to Massachusetts homes is a testament to the collective effort that brought offshore wind power to the United States."

Vineyard Wind isn't just a project; it's a catalyst for change. It perfectly aligns with Massachusetts' ambitious clean energy goals, which include achieving net-zero emissions by 2050 and procuring 3,200 megawatts of offshore wind by 2028, while BOEM lease requests in the Northeast continue to expand the development pipeline across the region. As Energy and Environmental Affairs Secretary Rebecca Tepper stated, "Standing up a new industry is no easy feat, but we're committed to forging ahead and growing this sector to lower energy costs, create good jobs, and build a cleaner, healthier Commonwealth."

The launch of Vineyard Wind transcends Massachusetts, serving as a beacon for the entire U.S. offshore wind industry, as New York's biggest offshore wind farm moves forward to amplify regional momentum. This demonstration of large-scale development paves the way for further investment and growth in this critical clean energy source. However, the journey isn't without its challenges, and questions persist about reaching 1 GW on the grid nationwide as stakeholders navigate timelines. Concerns regarding potential impacts on marine life and visual aesthetics remain, requiring careful consideration and ongoing community engagement.

Despite these challenges, Vineyard Wind stands as a powerful symbol of hope and progress. It represents a significant step towards a cleaner, more sustainable future, powered by renewable energy sources at a time when U.S. offshore wind is about to soar according to industry outlooks. It's a testament to the collaborative effort of policymakers, businesses, and communities working together to tackle the climate crisis. As the turbines continue their majestic rotations, they carry a message of hope, reminding us that a brighter, more sustainable future is within reach, powered by the wind of change.

Additional Considerations:

• The project boasts a dedicated Fisheries Innovation Fund, fostering collaboration between the fishing and offshore wind industries to ensure sustainable coexistence.
• Vineyard Wind has invested in education and training programs, preparing local residents for careers in the burgeoning wind energy sector.
• The project's success opens doors for further offshore wind development in the U.S., such as Long Island proposals gaining attention, paving the way for a clean energy revolution.

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Chinese EV Makers in Europe target the EU market with electric SUVs, battery swapping, competitive pricing, and subsidies, led by NIO, Xpeng, MG, and BYD, starting in Norway amid Europe's zero-emissions push.

Key Points

Chinese EV makers expanding into EU markets with tech, pricing, and lean retail to gain share.

✅ Early launches in Norway leverage EV incentives

✅ Compete via battery swapping, OTA tech, and price

✅ Mix of importers, online sales, and lean dealerships

China's electric carmakers are darting into Europe, hoping to catch traditional auto giants cold and seize a slice of a market supercharged by the continent's EV transition towards zero emissions.

Nio Inc (NIO.N), among a small group of challengers, launches its ES8 electric SUV in Oslo on Thursday - the first foray outside China for a company that is virtually unheard of in Europe even though it's valued at about $57 billion.

Other brands unfamiliar to many Europeans that have started selling or plan to sell cars on the continent include Aiways, BYD's (002594.SZ) Tang, SAIC's (600104.SS) MG, Dongfeng's VOYAH, and Great Wall's (601633.SS) ORA.

Yet Europe, a crowded, competitive car market dominated by famous brands, has proved elusive for Chinese carmakers in the past. They made strategic slips and also contended with a perception that China, long associated with cheap mass-production, could not compete on quality.

Indeed, Nio Chief Executive William Li told Reuters he foresees a long road to success in a mature market where it is "very difficult to be successful".

Chinese carmakers may need up to a decade to "gain a firm foothold" in Europe, the billionaire entrepreneur said - a forecast echoed by He Xiaopeng, CEO of electric vehicle (EV) maker Xpeng (9868.HK) who told Reuters his company needs 10 years "to lay a good foundation" on the continent.

These new players, many of which have only ever made electric vehicles, believe they have a window of opportunity to finally crack the lucrative market.

While electric car sales in the European Union more than doubled last year and jumped 130% in the first half of this year, even as threats to the EV boom persist, traditional manufacturers are still gradually shifting their large vehicle ranges over to electric and have yet to flood the thirsty market with models.

"The market is not that busy yet, if you compare it with combustion-engine models where each of the major carmakers has a whole range of vehicles," said Alexander Klose, who heads the foreign operations of Chinese electric vehicle maker Aiways.

"That is where we think we have an opportunity," he added on a drive around Munich in a U5, a crossover SUV on sale in Germany, the Netherlands, Belgium and France, where new EV rules are aimed at discouraging purchases of Chinese models.

The U5 starts at 30,000 euros ($35,000) in Germany - below the average new car price and most local EV prices - before factoring in 9,000 euros in EV subsidies, though France's EV incentives have tightened for Chinese models - and comes in just four colours and two trim levels to minimize costs.

'GERMAN PEOPLE BUY GERMAN CARS'
As Chinese carmakers gear up to enter Europe, they are trying out different business models, from relying on importers, low-cost retail options or building up more traditional dealerships.

The new reality that top Western carmakers like BMW (BMWG.DE) and Tesla Inc (TSLA.O) now produce cars in technological powerhouse China, where the EV market is intensely competitive, has likely undermined past perceptions of low quality workmanship - though they can be hard to shake.

Antje Levers, a teacher who lives in western Germany near the Dutch border, and her husband owned a diesel Chevrolet Orlando but wanted a greener option. They bought an Aiways U5 last year after plenty of research to fend off criticism for not buying local, and loves its handling and low running costs.

She said people had told her: "You can't buy a Chinese car, they're plastic and cheap and do not support German jobs." But she feels that is no longer true in a global car industry where you find German auto parts in Chinese cars and vice versa.

"German people buy German cars, so to buy a Chinese car you need to have a little courage," the 47-year-old added. "Sometimes you just have to be open for new things."

NIO LANDS IN NORWAY WITH NOMI
Nio launches its ES8 electric SUV alongside a NIO House - part-showroom, part-cafe and workspace for customers in the capital of Norway, a country that's also the initial base for Xpeng.

Norwegian state support for EVs has put the country at the forefront of the shift to electric. It makes sense as a European entry point because customers are used to electric vehicles so only have to be sold on an unknown Chinese brand, said Christina Bu, secretary general of the Norwegian EV Association.

"If you go to another European country you may struggle to sell both," said Bu, adding that her organisation has talked extensively with a number of Chinese EV makers keen to learn market specifics and consumer culture before launching there.

She is uncertain, though, how consumers will react to Nio's approach of swapping out batteries for customers rather than stopping to charge them, a contrast to other EV battery strategies in the industry, or the carmaker's strategy of leasing rather than selling batteries to customers.

"But where the Chinese are really at the forefront is the technology," she added, referring in particular to Nomi, the digital assistant in the dashboard of Nio's cars.

NEWCOMERS' STRATEGIES DIVERGE
One size does not fit all. While Nio and Xpeng have been hiring staff building up their organizations in Norway, SAIC's MG works through a car importer to sell cars in a handful of European markets.

Aiways is trying an lower-cost approach to selling cars in Europe, though Klose says it varies by market.

In Germany, for instance, the company sells its cars through Euronics, an association of independent electronics retailers, rather than building traditional dealerships.

It aims to sell across the EU by next year and to enter the U.S. market by 2023, said Klose, a former Volvo and Ford executive.

Past failed attempts by Chinese carmakers to conquer Europe are unlikely to hurt Chinese EV makers today, as consumers have grown accustomed to electronics coming from China, he added.

Such failures included Brilliance in 2007, whose vehicle received one out of five stars in a German car crash test, damaging the brand.

"The fact there are more Chinese carmakers entering the market will also help us, as it will make Chinese brands more accepted by consumers," Klose said.

Selling cars to Europeans is a "tough business, especially if your product isn't well known," said Arnie Richters, chairman of Brussels-based industry group Platform for Electromobility.

"But if they bring a lot of innovation they have a lot of opportunity."

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First Glasgow Electric Buses will transform the Caledonia depot with 160 charging points, zero-emission operations, grid upgrades, and rapid charging, supported by Transport Scotland funding and Alexander Dennis manufacturing for cleaner urban routes by 2023.

Key Points

Electric single-deckers at Caledonia depot with 160 chargers and upgrades, delivering zero-emission service by 2023

✅ 160 charging points; 4-hour rapid recharge capability

✅ Grid upgrades to power a fleet equal to a 10,000-person town

✅ Supported by Transport Scotland; built by Alexander Dennis

First Bus will install 160 charging points and replace half its fleet with electric buses at its Caledonia depot in Glasgow.

The programme is expected to be completed in 2023, similar to Metro Vancouver's battery-electric rollout milestones, with the first 22 buses arriving by autumn.

Charging the full fleet will use the same electricity as it takes to power a town of 10,000 people.

The scale of the project means changes are needed to the power grid, a challenge highlighted in global e-bus adoption analysis, to accommodate the extra demand.

First Glasgow managing director Andrew Jarvis told BBC Scotland: "We've got to play our part in society in changing how we all live and work. A big part of that is emissions from vehicles.

"Transport is stubbornly high in terms of emissions and bus companies need to play their part, and are playing their part, in that zero emission journey."

First Bus currently operates 337 buses out of its largest depot with another four sites across Glasgow.

The new buses will be built by Alexander Dennis at its manufacturing sites in Falkirk and Scarborough.

The transition requires a £35.6m investment by First with electric buses costing almost double the £225,000 bill for a single decker running on diesel.

But the company says maintenance and running costs, as seen in St. Albert's electric fleet results, are then much lower.

The buses can run on urban routes for 16 hours, similar to Edmonton's first e-bus performance, and be rapidly recharged in just four hours.

This is a big investment which the company wouldn't be able to achieve on its own.

Government grants only cover 75% of the difference between the price of a diesel and an electric bus, similar to support for B.C. electric school buses programmes, so it's still a good bit more expensive for them.

But they know they have to do it as a social responsibility, and large-scale initiatives like US school bus conversions show the direction of travel, and because the requirements for using Low Emissions Zones are likely to become stricter.

The SNP manifesto committed to electrifying half of Scotland's 4,000 or so buses within two years.

Some are questioning whether that's even achievable in the timescale, though TTC's large e-bus fleet offers lessons, given the electricity grid changes that would be necessary for charging.

But it's a commitment that environmental groups will certainly hold them to.

Transport Scotland is providing £28.1m of funding to First Bus as part of the Scottish government's commitment to electrify half of Scotland's buses in the first two years of the parliamentary term.

Net Zero Secretary Michael Matheson said: "It's absolute critical that we decarbonise our transport system and what we have set out are very ambitious plans of how we go about doing that.

"We've set out a target to make sure that we decarbonise as many of the bus fleets across Scotland as possible, at least half of it over the course of the next couple of years, and we'll set out our plans later on this year of how we'll drive that forward."

Transport is the single biggest source of greenhouse gas emissions in Scotland which are responsible for accelerating climate change.

In 2018 the sector was responsible for 31% of the country's net emissions.

Electric bus
First Glasgow has been trialling two electric buses since January 2020.

Driver Sally Smillie said they had gone down well with passengers because they were much quieter than diesel buses.

She added: "In the beginning it was strange for them not hearing them coming but they adapt very easily and they check now.

"It's a lot more comfortable. You're not feeling a gear change and the braking's smoother. I think they're great buses to drive."

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EU Renewable Energy Transition accelerates wind and solar growth, slashes fossil fuels and carbon emissions via the ETS, strengthens energy security with LNG diversification, and advances grid resilience toward 2030 climate targets.

Key Points

EU shift to wind, solar, and efficiency that cuts fossil fuels while boosting energy security and grid stability

✅ Fossil fuels at 29% of EU power in 2023, coal and gas down sharply

✅ Renewables hit 44% share; wind 18%, solar 9% and rising

✅ ETS, LNG diversification, and efficiency cut demand and emissions

Europe's energy landscape is undergoing a dramatic transformation, fueled by a surge in renewable energy and a corresponding decline in fossil fuel dependence. This shift, documented in both a report from the energy think tank Ember and the European Commission's State of the Energy Union report, paints a picture of progress, but also highlights the challenges that lie ahead on the path to a sustainable future.

Fossil Fuels Facing an Unprecedented Decline:

Fossil fuels dipped to their lowest point in recorded history, making up only 29% of EU electricity generation in 2023. This represents a significant 19% decrease in both fossil fuel generation and carbon emissions compared to 2022, exceeding even the reductions witnessed during the pandemic. Coal, the dirtiest fossil fuel, saw the steepest decline, dropping by 26%, while gas generation fell by 15%. This decline is attributed to a combination of factors, including:

Increased deployment of renewables: As renewable energy sources like wind and solar become more affordable and efficient, they are increasingly displacing fossil fuels in the energy mix.

Carbon pricing: The EU's Emissions Trading System (ETS) puts a price on carbon emissions, incentivizing generators to switch to cleaner sources of energy.

Geopolitical tensions: The war in Ukraine and subsequent sanctions on Russia have accelerated Europe's efforts to diversify its energy sources away from Russian fossil fuels across the bloc.

Renewables Ascending to New Heights:

Renewable energy is now the dominant force in the EU, as renewables surpassed fossil fuels in the power mix, contributing a record-breaking 44% of the electricity mix. Wind energy leads the charge, generating 18% of electricity – the equivalent of France's entire demand – and surpassing gas for the first time. Solar power also continues to grow, reaching a 9% share, as solar reshapes electricity prices in Northern Europe and hydropower recovered from its 2022 dry spell. This remarkable growth is driven by factors such as:

Favorable policy frameworks: The EU has set ambitious renewable energy targets and implemented supportive policies, including feed-in tariffs and auctions.

Technological advancements: Advancements in wind turbine and solar panel technologies have made them more efficient and cost-effective.
Public support: There is growing public support for renewable energy, driven by concerns about climate change and energy security.

Beyond generation, energy efficiency is playing a critical role in reducing overall energy demand. Electricity demand in the EU fell by 3.4% in 2023, thanks to factors such as improved building insulation and more efficient appliances.

EU on Track to Quit Russian Fossil Fuels:

The report underscores Europe's progress in reducing dependence on Russian fossil fuels. Imports of Russian gas have plummeted to 40-45 billion cubic metres, compared to a staggering 155 bcm in 2021. This represents a remarkable 70% reduction in just one year. This shift has been achieved through a combination of increased LNG imports, diversification of gas suppliers, and accelerated deployment of renewable energy sources.

Overall greenhouse gas emissions decreased by 3% in 2022, putting the EU on track to achieve its ambitious 55% reduction target by 2030. These achievements demonstrate the EU's commitment to climate action and its ability to respond decisively to geopolitical challenges.

Success, But Not Complacency:

Despite the positive developments, the Commission warns against complacency. Energy markets remain volatile, fossil fuel subsidies are rising in some countries, and critical infrastructure vulnerabilities persist, while some advocates call for a fossil fuel lockdown to accelerate the transition. The bloc needs to accelerate renewable energy expansion to reach the legally binding 42.5% target by 2030. Additionally, ensuring affordability and security of energy supply will be crucial to maintaining public support for the transition.

Challenges and Opportunities:

While some countries like Denmark, Finland, and the Netherlands fall short of EU climate and energy goals, others like Spain, Portugal, and Belgium showcase success with renewables. The Commission is taking action with a plan to support the wind industry, where investments in European wind continue, even as it faces challenges from high inflation and increasing competition from China. Additionally, ensuring timely updates to national energy and climate plans is crucial for achieving the EU's overall objectives.

NGOs Urge Faster Action:

NGOs like the Climate Action Network (CAN) express concern about the adequacy of national plans, highlighting the gap between ambition and concrete action. They urge member states to accelerate efforts to meet the 2030 targets and avoid a "lost decade" in climate action. CAN emphasizes the need for more ambitious national energy and climate plans, increased investment in renewables, and accelerated energy efficiency measures.

Europe's energy transition is progressing rapidly, with renewables taking center stage and emissions declining. However, significant challenges remain, necessitating continued commitment, national-level action, and a focus on affordability, security, and sustainability. As 2030 approaches, Europe's green surge must translate into concrete results to secure a climate-neutral future.

Looking ahead, several key areas will define the success of Europe's energy transition:

• Accelerating renewable energy deployment: The EU needs to maintain its momentum in building wind, solar, and other renewable energy sources. This requires sustained clean energy investment, streamlined permitting processes, and addressing grid integration challenges.
• Ensuring affordability and security of supply: The energy transition must be just and inclusive, ensuring that energy remains affordable for all citizens and businesses. Additionally, diversifying energy sources and enhancing grid resilience are crucial to guarantee energy security.
• Enhancing energy efficiency: Reducing energy demand remains crucial to achieving climate goals and reducing reliance on fossil fuels. This requires continued investments in building energy efficiency, promoting energy-efficient appliances and technologies, and encouraging behavioral changes.
• International cooperation: Climate change and energy security are global challenges. The EU must continue to lead by example as renewables exceed 30% globally and collaborate with other countries on technological advancements, policy innovations, and financial support for developing nations undergoing their own energy transitions.

Europe's green surge is a testament to its ambition and collective action. By addressing the remaining challenges and seizing the opportunities ahead, the EU can pave the way for a sustainable and secure energy future for itself and the world.

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