Biden's Climate Law Is Working, and Not Working


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Inflation Reduction Act Clean Energy drives EV adoption and renewable power, but grid interconnection, permitting, and supply chain bottlenecks slow wind, solar, and offshore projects, risking emissions targets despite domestic manufacturing growth and tax incentives.

 

Key Points

An IRA push to scale EVs and renewables, meeting EV goals but lagging wind and solar amid grid and permitting delays.

✅ EV sales up 50%, 9.2% of 2023 new cars; growth may moderate.

✅ 32.3 GW added, below 46-79 GW/year needed for climate targets.

✅ Grid, permitting, and supply chain delays bottleneck wind and solar.

 

A year and a half following President Biden's enactment of an ambitious climate change bill, the landscape of the United States' clean energy transition, shaped by 2021 electricity lessons, presents a mix of successes and challenges. A recent study by a consortium of research organizations highlights that while electric vehicle (EV) sales have surged, aligning with the law's projections, the expansion of renewable energy sources like wind and solar has encountered significant hurdles.

The legislation, known as the Inflation Reduction Act, aimed for a dual thrust in America's climate strategy: boosting EV adoption, alongside EPA emission limits, and significantly increasing the generation of electricity from renewable resources. The Act, passed in 2022, was anticipated to propel the United States toward reducing its greenhouse gas emissions by approximately 40 percent from 2005 levels by the end of this decade, backed by extensive financial incentives for clean energy advancements.

Electric vehicle sales have indeed seen a remarkable uptick, with a more than 50 percent increase over the past year, as EV sales surge into 2024 across the market, culminating in EVs comprising 9.2 percent of all new car sales in the United States in 2023. This growth trajectory met the upper range of analysts' predictions post-law enactment, signaling a strong start toward achieving the Act's emission reduction targets.

However, the EV market faces uncertainties regarding the sustainability of this rapid growth. The initial surge in sales was largely driven by early adopters, and the market now confronts challenges such as high prices and limited charging infrastructure, while EVs still trail gas cars in overall market share. Despite these concerns, projections suggest that even a slowdown to 30-40 percent growth in EV sales for 2024 would align with the law's emission goals.

The renewable energy sector's progress is less straightforward. Despite achieving a record addition of 32.3 gigawatts of clean electricity capacity in the past year, the pace falls short of the projected 46 to 79 gigawatts needed annually to meet the United States' climate objectives. While there is potential for about 60 gigawatts of projects in the pipeline for this year, not all are expected to materialize on schedule, indicating a lag in the deployment of new renewable energy sources.

Logistical challenges are a significant barrier to scaling up renewable energy, especially as EV-driven electricity demand rises in the coming years. Lengthy grid connection processes, permitting delays, and local opposition hinder wind and solar project developments. Moreover, ambitious plans for offshore wind farms are hampered by supply chain issues and regulatory constraints.

To achieve the Inflation Reduction Act's ambitious targets, the United States needs to add 70 to 126 gigawatts of renewable capacity annually from 2025 to 2030—a formidable task given the current logistical and regulatory bottlenecks. The analysis underscores the urgency of addressing these non-cost barriers to unlock the full potential of the law's clean energy and emissions reduction ambitions.

In addition to promoting clean energy generation and EV adoption, the Inflation Reduction Act has spurred domestic manufacturing of clean energy technologies. With $44 billion invested in U.S. clean-energy manufacturing last year, this aspect of the law has seen considerable success, and permanent clean energy tax credits are being debated to sustain momentum, demonstrating the Act's capacity to drive economic and industrial transformation.

The law's impact extends to emerging clean energy technologies, offering tax incentives for advanced nuclear reactors, renewable hydrogen production, and carbon capture and storage projects. While these initiatives hold promise for further emissions reductions, their development and deployment are still in the early stages, with tangible outcomes expected in the longer term.

While the Inflation Reduction Act has catalyzed significant strides in certain areas of the United States' clean energy transition, including an EV inflection point in adoption trends, it faces substantial hurdles in fully realizing its objectives. Overcoming logistical, regulatory, and market challenges will be crucial for the nation to stay on course toward its ambitious climate goals, underscoring the need for continued innovation, investment, and policy refinement in the journey toward a sustainable energy future.

 

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Alectra is 'leading the charge' when it comes to electric vehicles

Alectra EV Leadership Award highlights Plug'n Drive and CEA recognition for AlectraDrive, GridExchange, smart charging, and clean energy innovation at the GRE&T Centre, advancing Canadian EV adoption, utility-led programs, rate design, and smart grid integration.

 

Key Points

An award recognizing Alectra Utilities for leading EV programs and clean energy innovation driven by its GRE&T Centre.

✅ Honors utility-led EV programs: AlectraDrive @Work, @Home, GridExchange

✅ Recognizes smart grid, charging, and innovative rate design

✅ Endorsed by Plug'n Drive and CEA; SEPA and Corporate Knights honors

 

Plug'n Drive and the Canadian Electricity Association (CEA) have awarded Alectra Utilities with the 'Tom Mitchell Electric Vehicle Utility Leadership Award' for its programs: AlectraDrive @Work, AlectraDrive @Home, GridExchange, which explores models where EV owners sell power back to the grid, Advantage Power Pricing and York University Electric Bus Simulation Study. All of these initiatives operate out of Alectra's Green Energy & Technology Centre (GRE&T Centre) and align with emerging vehicle-to-grid integration pilots nationwide.

"We appreciate receiving this award from Plug'n Drive and the CEA," said Brian Bentz, President and CEO, Alectra Inc. "The work that the GRE&T Centre does is an important part of our effort to help build a clean energy future and embrace new technologies like EV charging infrastructure and vehicle-to-grid pilots to help our customers."

The Electric Vehicle Awards, now in their sixth year, recognize Ca­nadian car dealerships and electricity utilities that are leaders in the sale and promotion of electric vehicles, from dedicated education efforts like the EV education centre in Toronto to consumer events such as the Quebec Electric Vehicle Show that raise awareness. Electricity utilities are recognized based on the merits and impacts of utility led EV programs and initiatives.

Earlier this year, Alectra was named Public Power Utility of the Year by the Smart Electric Power Alliance (SEPA) and ranked third in Corporate Knights 'Best 50 Corporate Citizens', as Canadian innovators deploy V1G EV chargers that support smart, grid-friendly charging.

 

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U.S. Electric Vehicle Sales Soar Into 2024

U.S. EV Sales Growth reflects rising consumer demand, expanding market share, new tax credits, and robust charging infrastructure, as automakers boost output and quarterly sales under the Inflation Reduction Act drive adoption across states.

 

Key Points

It is the rise in U.S. EV sales and market share, driven by incentives, charging growth, and automaker investment.

✅ Quarterly EV sales and share have risen since Q3 2021.

✅ Share topped 10% in Q3 2023, with states far above.

✅ IRA credits and chargers lower costs and boost adoption.

 

Contrary to any skepticism, the demand for electric vehicles (EVs) in the United States is not dwindling. Data from the Alliance for Automotive Innovation highlights a significant and ongoing increase in EV sales from 2021 through the third quarter of 2023. An upward trend in quarterly sales (depicted as bars on the left axis) and EV sales shares (illustrated by the red line on the right axis) is evident. Sales surged from about 125,000 in Q1 2021 to 185,000 in Q4 2021, and from around 300,000 in Q1 2023 to 375,000 by Q3 2023. Notably, by Q3 2023, annual U.S. EV sales exceeded 1 million for the first time, a milestone often cited as the tipping point for mass adoption in the U.S., marking a 58% increase over the same period in 2022.

EV sales have shown consistent quarterly growth since Q3 2021, and the proportion of EVs in total light-duty vehicle sales is also on the rise. EVs’ share of new sales increased from roughly 3% in Q1 2021 to about 7% in 2022, and further to over 10% in Q3 2023, though they are still behind gas cars in overall market share, for now. For context, according to the U.S. Environmental Protection Agency’s Automotive Trends Report, EVs have reached a 10% market share more quickly than conventional hybrids without a plug, which took about 25 years.

State-level data also indicates that several states exceed national averages in EV sales. California, for example, saw EVs comprising nearly 27% of sales through September 2023, even as a brief Q1 2024 market share dip has been noted nationally. Additionally, 12 states plus the District of Columbia had EV sales shares between 10% and 20% through Q3 2023.

EV sales data by automaker reveal that most companies sold more EVs in Q2 or Q3 2023 than in any previous quarter, mirroring global growth that went from zero to 2 million in five years. Except for Ford, each automaker sold more EVs in the first three quarters of 2023 than in all of 2022. EV sales in Q3 2023 notably increased compared to Q3 2022 for companies like BMW, Tesla, and Volkswagen.

Despite some production scalebacks by Ford and General Motors, these companies, along with others, remain dedicated to an electric future and expect to sell more EVs than ever. The growing consumer interest in EVs is also reflected in recent surveys by McKinsey, J.D. Power, and Consumer Reports, and echoed in Europe where the share of electric cars grew during lockdown months, showing an increasing intent to purchase EVs and a declining interest in gasoline vehicles.

Furthermore, the Inflation Reduction Act of 2022 introduces new tax credits, potentially making EVs more affordable than gasoline counterparts. Investments in charging infrastructure are also expected to increase, especially as EV adoption could drive a 38% rise in U.S. electricity demand, with over $21 billion allocated to boost public chargers from around 160,000 in 2023 to nearly 1 million by 2030.

The shift to EVs is crucial for reducing climate pollution, enhancing public health, and generating economic benefits and jobs, and by 2021 plug-in vehicles had already traveled 19 billion miles on electricity, underscoring real-world progress toward these goals. The current data and trends indicate a robust and positive future for EVs in the U.S., reinforcing the need for strong standards to further encourage investment and consumer confidence in electric vehicles.

 

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Bus depot bid to be UK's largest electric vehicle charging hub

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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Why the Texas grid causes the High Plains to turn off its wind turbines

Texas High Plains Wind Energy faces ERCOT transmission congestion, limiting turbines in the Panhandle from stabilizing the grid as gas prices surge, while battery storage and solar could enhance reliability and lower power bills statewide.

 

Key Points

A major Panhandle wind resource constrained by ERCOT transmission, impacting grid reliability and electricity rates.

✅ Over 11,000 turbines can power 9M homes in peak conditions

✅ Transmission congestion prevents flow to major load centers

✅ Storage and solar can bolster reliability and reduce bills

 

Texas’s High Plains region, which covers 41 counties in the Texas Panhandle and West Texas, is home to more than 11,000 wind turbines — the most in any area of the state.

The region could generate enough wind energy to power at least 9 million homes. Experts say the additional energy could help provide much-needed stability to the electric grid during high energy-demand summers like this one, and even lower the power bills of Texans in other parts of the state.

But a significant portion of the electricity produced in the High Plains stays there for a simple reason: It can’t be moved elsewhere. Despite the growing development of wind energy production in Texas, the state’s transmission network, reflecting broader grid integration challenges across the U.S., would need significant infrastructure upgrades to ship out the energy produced in the region.

“We’re at a moment when wind is at its peak production profile, but we see a lot of wind energy being curtailed or congested and not able to flow through to some of the higher-population areas,” said John Hensley, vice president for research and analytics at the American Clean Power Association. “Which is a loss for ratepayers and a loss for those energy consumers that now have to either face conserving energy or paying more for the energy they do use because they don’t have access to that lower-cost wind resource.”

And when the rest of the state is asked to conserve energy to help stabilize the grid, the High Plains has to turn off turbines to limit wind production it doesn’t need.

“Because there’s not enough transmission to move it where it’s needed, ERCOT has to throttle back the [wind] generators,” energy lawyer Michael Jewell said. “They actually tell the wind generators to stop generating electricity. It gets to the point where [wind farm operators] literally have to disengage the generators entirely and stop them from doing anything.”

Texans have already had a few energy scares this year amid scorching temperatures and high energy demand to keep homes cool. The Electric Reliability Council of Texas, which operates the state’s electrical grid, warned about drops in energy production twice last month and asked people across the state to lower their consumption to avoid an electricity emergency.

The energy supply issues have hit Texans’ wallets as well. Nearly half of Texas’ electricity is generated at power plants that run on the state’s most dominant energy source, natural gas, and its price has increased more than 200% since late February, causing elevated home utility bills.

Meanwhile, wind farms across the state account for nearly 21% of the state’s power generation. Combined with wind production near the Gulf of Mexico, Texas produced more than one-fourth of the nation’s wind-powered electric generation last year.

Wind energy is one of the lowest-priced energy sources because it is sold at fixed prices, turbines do not need fuel to run and the federal government provides subsidies. Texans who get their energy from wind farms in the High Plains region usually pay less for electricity than people in other areas of the state. But with the price of natural gas increasing from inflation, Jewell said areas where wind energy is not accessible have to depend on electricity that costs more.

“Other generation resources are more expensive than what [customers] would have gotten from the wind generators if they could move it,” Jewell said. “That is the definition of transmission congestion. Because you can’t move the cheaper electricity through the grid.”

A 2021 ERCOT report shows there have been increases in stability constraints for wind energy in recent years in both West and South Texas that have limited the long-distance transfer of power.

“The transmission constraints are such that energy can’t make it to the load centers. [High Plains wind power] might be able to make it to Lubbock, but it may not be able to make it to Dallas, Fort Worth, Houston or Austin,” Jewell said. “This is not an insignificant problem — it is costing Texans a lot of money.”

Some wind farms in the High Plains foresaw there would be a need for transmission. The Trent Wind Farm was one of the first in the region. Beginning operations in 2001, the wind farm is between Abilene and Sweetwater in West Texas and has about 100 wind turbines, which can supply power to 35,000 homes. Energy company American Electric Power built the site near a power transmission network and built a short transmission line, so the power generated there does go into the ERCOT system.

But Jewell said high energy demand and costs this summer show there’s a need to build additional transmission lines to move more wind energy produced in the High Plains to other areas of the state.

Jewell said the Public Utility Commission, which oversees the grid, is conducting tests to determine the economic benefits of adding transmission lines from the High Plains to the more than 52,000 miles of lines that already connect to the grid across the state. As of now, however, there is no official proposal to build new lines.

“It does take a lot of time to figure it out — you’re talking about a transmission line that’s going to be in service for 40 or 50 years, and it’s going to cost hundreds of millions of dollars,” Jewell said. “You want to be sure that the savings outweigh the costs, so it is a longer process. But we need more transmission in order to be able to move more energy. This state is growing by leaps and bounds.”

A report by the American Society of Civil Engineers released after the February 2021 winter storm stated that Texas has substantial and growing reliability and resilience problems with its electric system.

The report concluded that “the failures that caused overwhelming human and economic suffering during February will increase in frequency and duration due to legacy market design shortcomings, growing infrastructure interdependence, economic and population growth drivers, and aging equipment even if the frequency and severity of weather events remains unchanged.”

The report also stated that while transmission upgrades across the state have generally been made in a timely manner, it’s been challenging to add infrastructure where there has been rapid growth, like in the High Plains.

Despite some Texas lawmakers’ vocal opposition against wind and other forms of renewable energy, and policy shifts like a potential solar ITC extension can influence the wind market, the state has prime real estate for harnessing wind power because of its open plains, and farmers can put turbines on their land for financial relief.

This has led to a boom in wind farms, even with transmission issues, and nationwide renewable electricity surpassed coal in 2022 as deployment accelerated. Since 2010, wind energy generation in Texas has increased by 15%. This month, the Biden administration announced the Gulf of Mexico’s first offshore wind farms will be developed off the coasts of Texas and Louisiana and will produce enough energy to power around 3 million homes.

“Texas really does sort of stand head and shoulders above all other states when it comes to the actual amount of wind, solar and battery storage projects that are on the system,” Hensley said.

One of the issues often brought up with wind and solar farms is that they may not be able to produce as much energy as the state needs all of the time, though scientists are pursuing improvements to solar and wind to address variability. Earlier this month, when ERCOT asked consumers to conserve electricity, the agency listed low wind generation and cloud coverage in West Texas as factors contributing to a tight energy supply.

Hensley said this is where battery storage stations can help. According to the U.S. Energy Information Administration, utility-scale batteries tripled in capacity in 2021 and can now store up to 4.6 gigawatts of energy. Texas has been quickly developing storage projects, spurred by cheaper solar batteries, and in 2011, Texas had only 5 megawatts of battery storage capacity; by 2020, that had ballooned to 323.1 megawatts.

“Storage is the real game-changer because it can really help to mediate and control a lot of the intermittency issues that a lot of folks worry about when they think about wind and solar technology,” Hensley said. “So being able to capture a lot of that solar that comes right around noon to [1 p.m.] and move it to those evening periods when demand is at its highest, or even move strong wind resources from overnight to the early morning or afternoon hours.”

Storage technology can help, but Hensley said transmission is still the big factor to consider.

Solar is another resource that could help stabilize the grid. According to the Solar Energy Industries Association, Texas has about 13,947 megawatts of solar installed and more than 161,000 installations. That’s enough to power more than 1.6 million homes.

This month, the PUC formed a task force to develop a pilot program next year that would create a pathway for solar panels and batteries on small-scale systems, like homes and businesses, to add that energy to the grid, similar to a recent virtual power plant in Texas rollout. The program would make solar and batteries more accessible and affordable for customers, and it would pay customers to share their stored energy to the grid as well.

Hensley said Texas has the most clean-energy projects in the works that will likely continue to put the region above the rest when it comes to wind generation.

“So they’re already ahead, and it looks like they’re going to be even farther ahead six months or a year down the road,” he said.

 

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Volvo Trucks to launch complete range of electric trucks in Europe in 2021

Volvo Electric Heavy-Duty Trucks lead Europe’s e-mobility shift, meeting strict emissions rules with battery-electric drivelines, hydrogen fuel cell roadmaps, fast charging infrastructure, and autonomous freight solutions for regional haulage and urban construction.

 

Key Points

A battery-electric heavy truck range for haulage and urban construction, targeting zero emissions and compliance.

✅ Up to 44t GCW, ranges up to 300 km per charge

✅ Battery-electric now; hydrogen fuel cells targeted next

✅ Production from 2022; suited to haulage and construction

 

According to the report published by Allied Market Research, the global electric truck market generated $422.5M (approx €355.1M) in 2019 and is estimated to reach $1.89B (approx €1.58B) by 2027, registering a CAGR of 25.8% from 2020 to 2027, reflecting broader expectations that EV adoption within a decade will accelerate worldwide. 

The surge in government initiatives to promote e-mobility and stringent emission norms on vehicles using fossil fuels (petrol and diesel) is driving the growth of the global electric truck market, while shifts in the EV aftermarket are expected to reinforce this trend. 


Launching a range of electric trucks in 2021
Volvo is among the several companies, including early moves like Tesla's truck reveal efforts, trying to cash in on this popular and lucrative market. Recently, the company announced that it’s going to launch a complete heavy-duty range of trucks with electric drivelines starting in Europe in 2021. Next year, hauliers in Europe will be able to order all-electric versions of Volvo’s heavy-duty trucks. The sales will begin next year and volume production will start in 2022. 

“To reduce the impact of transport on the climate, we need to make a swift transition from fossil fuels to alternatives such as electricity. But the conditions for making this shift, and consequently the pace of the transition, vary dramatically across different hauliers and markets, depending on many variables such as financial incentives, access to charging infrastructure and type of transport operations,” explains Roger Alm, President Volvo Trucks.


Used for regional transport and urban construction operations
According to the company, it is now testing electric heavy-duty models – Volvo FH, FM, and FMX trucks, which will be used for regional transport and urban construction operations in Europe, and in the U.S., 70 Volvo VNR Electric trucks are being deployed in California initiatives as well. These Volvo trucks will offer a complete heavy-duty range with electric drivelines. These trucks will have a gross combination weight of up to 44 tonnes.

“Our chassis is designed to be independent of the driveline used. Our customers can choose to buy several Volvo trucks of the same model, with the only difference being that some are electric and others are powered by gas or diesel. As regards product characteristics, such as the driver’s environment, reliability, and safety, all our vehicles meet the same high standards. Drivers should feel familiar with their vehicles and be able to operate them safely and efficiently regardless of the fuel used,” says Alm.


Fossil free by 2040
Depending on the battery configuration the range could be up to 300 km, claims the company. Back in 2019, Volvo started manufacturing the Volvo FL Electric and FE Electric for city distribution and refuse operations, primarily in Europe, while in the van segment, Ford's all-electric Transit targets similar urban use cases. Volvo Trucks aims to start selling electric trucks powered by hydrogen fuel cells in the second half of this decade. Volvo Trucks’ objective is for its entire product range to be fossil-free by 2040.

Back in 2019, Swedish autonomous and electric freight mobility leader provider Einride’s Pod became the world’s first autonomous, all-electric truck to operate a commercial flow for DB Schenker with a permit on the public road. Last month, the company launched its next-generation Pod in the hopes to have it on the road starting from 2021, while major fleet commitments such as UPS's Tesla Semi pre-orders signal broader demand.

 

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Clean Energy Accounts for 50% of Germany's Electricity

Germany Renewable Energy Milestone marks renewables supplying 53% of power, with record onshore wind and peak solar; hydrogen-ready gas plants and grid upgrades are planned to balance variability amid Germany's coal phase-out.

 

Key Points

It marks renewables supplying 53% of Germany's power, driven by wind and solar records in the energy transition.

✅ 53% of generation and 52% of consumption in 2024

✅ Onshore wind hit record; June solar peaked

✅ 24 GW hydrogen-ready gas plants planned for grid balancing

 

For the first time, renewable energy sources have surpassed half of Germany's electricity production this year, as indicated by data from sustainable energy organizations.

Preliminary figures from the Center for Solar Energy and Hydrogen Research alongside the German Association of Energy and Water Industries (BDEW) show that the contribution of green energy has risen to 53%, echoing how renewable power surpassed fossil fuels in Europe recently, a significant increase from 44% in the previous year.

The year saw a record output from onshore wind energy, as investments in European wind power climbed, and an unprecedented peak in solar energy production in June, as reported by the organizations. Additionally, renewable sources constituted 52% of Germany's total power consumption, marking an increase of approximately five percentage points.

Germany, Europe's leading economy, heavily impacted by Russia's reduced natural gas supplies last year, as Europeans push back from Russian oil and gas across the region, has been leaning on renewable sources to bridge the energy gap. This shift comes even as the country temporarily ramped up coal usage last winter. Having phased out its nuclear power plants earlier this year, Germany aims for an 80% clean energy production by 2030.

In absolute numbers, Germany produced a record level of renewable energy this year, supported by a solar power boost during the energy crisis, approximately 267 billion kilowatt-hours, according to the associations. A decrease of 11% in overall energy production facilitated a reduced reliance on fossil fuels.

However, Europe's transition to more sustainable energy sources, particularly offshore wind, has encountered hurdles such as increased financing and component costs, even as neighbors like Ireland pursue an ambitious green electricity goal within four years. Germany continues to face challenges in expanding its renewable energy capacity, as noted by BDEW’s executive board chairwoman, Kerstin Andreae.

Andreae emphasizes that while energy companies are eager to invest in the transition, they often encounter delays due to protracted approval processes, bureaucratic complexities, and scarcity of land despite legislative improvements.

German government officials are close to finalizing a strategy this week for constructing multiple new gas-fired power plants, despite findings that solar plus battery storage can be cheaper than conventional power in Germany, a plan estimated to cost around 40 billion euros ($44 billion). This initiative is a critical part of Germany's strategy to mitigate potential power shortages that might result from the discontinuation of coal power, particularly given the variability in renewable energy sources.

A crucial meeting involving representatives from the Economy and Finance Ministries, along with the Chancellor's Office, is expected to occur late Tuesday. The purpose is to finalize this agreement, according to sources who requested anonymity due to restrictions on public disclosure.

The Economy Ministry, spearheading this project, confirmed that intensive discussions are ongoing, although no further details were disclosed.

Germany's plan involves utilizing approximately 24 gigawatts (GW) of energy from hydrogen, including emerging offshore green hydrogen options, and gas-fired power plants to compensate for the fluctuations in wind and solar power generation. However, the proposal has faced challenges, particularly regarding the allocation of public funds for these projects, with disagreements arising with the European Union's executive in Brussels.

Environmental groups have also expressed criticism of the strategy. They advocate for an expedited end to fossil fuel usage and remain skeptical about the energy sector's arguments favoring natural gas as a transitional fuel. Despite natural gas emitting less carbon dioxide than coal, environmentalists question its role in Germany's energy future.

 

 

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