Clean energy investments in the EU and US are reshaping power grids and displacing traditional coal and gas sources. According to a recent energy trend analysis, renewables, primarily wind and solar, already surpass coal and nuclear power in electricity generation, contributing to a 15% reduction in consumer bills in the EU. The International Energy Agency (IEA) estimates that the EU saved around EUR 100 billion between 2021 and 2023 due to new wind and solar capacity.
In the US, the surge in wind and solar output is anticipated to displace coal and gas-fired plants in 2023 and 2024. Wind power capacity has doubled, and solar power has tripled since 2017, with private equity firms investing over USD 100 billion in renewable energy projects eligible for tax credits.
Source: IEA Renewable Energy Market Update – June 2023
This is detailed in a comprehensive report, examining the rapid growth of the clean energy transition. The report builds on research from RMI, Systems Change Lab, and other entities, emphasizing the accelerated pace of change.
Prominent voices in the field highlight the significance of this momentum. Petter Lydén, Head of International Climate Policy Division at Germanwatch, stresses the need for global leaders at COP28 to establish a quantified goal for renewables linked to a rapid phase-out of all fossil fuels.
Pierre Tardieu, Chief Policy Officer at WindEurope, emphasizes the economic benefits of wind energy expansion in Europe. Despite challenges such as inflation and increased input costs, the European Commission’s Wind Power Action Plan aims to accelerate wind farm permitting and finance new manufacturing capacities.
Dave Jones, Global Insights lead at Ember, underscores the swift transition toward an electrified future in the US and EU. The adoption of heat pumps and electric vehicles, driven by renewable electricity, is not only reducing emissions in the power sector but across the entire economy. The rate of change suggests significant emission reductions in the near future.
This collective insight paints a vivid picture of the transformative impact of clean energy investments on power generation and economic landscapes in the EU and US.