Although there are many unknowns, it is quite clear that the new US administration led by President Joe Biden plans to take serious action against carbon emissions in the coming years. In fact, the globe seems to be taking a leap with aggressively tackling climate change. With both China pledging to be carbon neutral by 2060, and the EU launching the Green Deal on the horizon.
Figure 1
The data from Lawrence Berkeley National Laboratory in Figure 1, shows a rise in solar production, with wind production as the leading renewable source, which is about 4-5 years ahead of solar in terms of deployment. However, it is projected that solar will soon be catching up in the marketplace.
In terms of the combined residential, commercial, and utility scale numbers. According to the US Green Building Council, buildings are a major cause of pollution representing 39% of carbon dioxide emissions both directly and indirectly.The data in Figure 1 strongly signals a transition “to an era where we need to assemble portfolios of resources into tradable energy products”. That can be dispatched seamlessly and predictably. To make clean energy viable and reliable, especially in terms of focus surrounding solar-powered buildings. We are on the brink of an energy transition, and Energy Innovation Senior Fellow, Eric Gimon, said “There may not be one perfect way to bring this portfolio concept into markets, but we need to learn how to do it” in the current utility marketplace.
The Biden administration’s heavy focus on climate action is projected to create more attention on clean power integration due to its falling costs, as well as renewable energy charming the market. According to data from the July 2020 report of the American Council on Renewable Energy (ACORE) (Figure 2).
Figure 2
With new policies being created, increasing renewables and emissions-reduction mandates, and price-wars on renewable energy and storage technologies, business and residential customers’ demand will undoubtedly accelerate. The current administration is promising action like we have never seen before, putting renewables on a fast-track in the market as we emerge in an era of energy transition.