2024-02-24 14:48:12
A recent BloombergNEF report indicates that solar and wind power are emerging as a preferred alternative to natural gas to replace coal in power generation.
It is not only in Europe that renewable energies are gaining ground in electricity production. Across the Atlantic, they meet 23% of electricity demand according to the latest BloombergNEF report.
The share of wind and solar energy in electricity production is clearly increasing while that of coal has fallen below 16%. On the other hand, electricity production from natural gas set a new record above 1,800 TWh in 2023, or a share of 43%.
Last year, as much as 42 gigawatts of renewable energy generation capacity were connected to the US power grid while 7.5 gigawatts of battery storage were added.
A development made possible in particular by a proactive policy of the government through the Inflation Reduction Act (IRA) and other subsidies granted by the department dedicated to energy and other organizations. Still according to BNEF, more than $300 billion in energy transition financing has been deployed in the United States for clean energy technologies, electric vehicles and investments in electricity grids.
Decline in sales of electric cars and offshore wind projects
As indicated in the Wall Street Journal, these figures “are published as concerns regarding investments in the energy transition begin to emerge.” The daily cites two examples, namely the slowdown in the growth of electric vehicle sales in recent weeks following an increase of 50% over the year 2023 on the one hand. On the other hand, questions surrounding offshore wind projects due to rising costs and falling yields.
BMI, a research unit of Fitch Solutions, also believes that the growth of renewable energies is emerging as the most possible replacement for coal in electricity production. The reason is the reduction in the share of natural gas at the global level, echoed by a recent controversy over liquefied natural gas (LNG) in the United States. Last month, Joe Biden suspended authorizations for LNG exports to Europe and Asia, justifying the suspension by concerns regarding the environmental consequences of gas activity.
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