This podcast explores the proposal to triple renewable energy capacity by 2030. It discusses the progress, challenges, and opportunities in achieving this goal. The podcast also delves into the conflicting narratives surrounding electric cars and their future impact. Additionally, it touches on topics like the discrepancy between EV sales headlines and reality, the political career of Joe Manchin, and controversies in clean energy and heating.
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Quick takeaways
The latest UN climate summit aims to triple renewable energy capacity by 2030 to limit warming and achieve net zero emissions, requiring significant capital and supportive policies.
Scaling renewable energy to triple its capacity by 2030 faces challenges in the limited tax equity market and the need to upgrade distribution systems for electric vehicles.
Contrary to headlines, electric vehicle sales continue to grow, and the efficiency of heat pumps makes electrification an attractive option for households.
Deep dives
The proposal to triple renewable energy capacity by 2030 is discussed
The latest UN climate summit has a proposal on the table to triple renewable energy capacity by 2030. This target is seen as essential to limit warming to 1.5 to 2 degrees Celsius and achieve net zero emissions. The plan would require 11 terawatts of new renewables capacity, mostly from solar and wind, and a trillion dollars in capital per year. While there are challenges with equipment availability and local policies, progress has already been made, particularly in the US, Europe, China, and Brazil. Market design, better compensation mechanisms, and supportive policies will be crucial to achieve this goal.
Challenges and potential financing models for scaling renewable energy
Scaling renewable energy to triple its capacity by 2030 presents certain challenges. One challenge is the limited tax equity market, which historically only included a few players. However, the introduction of transferability of tax credits opens up the potential for new participants. While demand for tax credits is high, it remains to be seen what terms and discounts will be offered. Another challenge is upgrading distribution systems to accommodate the increased demand for electric vehicles and electrification. While this requires significant investments, utilities have experience in building infrastructure and the increased use of flexible demand can help manage the transition effectively.
The forecast for electric vehicle adoption and winter fuel costs
Contrary to some headlines, electric vehicle (EV) sales continue to show strong growth, with record sales reported in September 2022. However, forecasts on winter fuel costs indicate that homeowners using fossil gas for heating may see lower bills compared to those using electricity. The average figures fail to account for the efficiency differences between resistance heating and extremely efficient heat pumps. Resistance heating uses twice the energy of heat pumps. While nuances exist depending on regions and electricity prices, the volatility of gas prices highlights the need to reduce dependence on fossil gas. Additionally, the net carbon benefit and potential cost savings make electrification an attractive option for households, particularly with efficient electric heating systems like heat pumps.
Joe Manchin's impact on energy policy and his upcoming political transition
Joe Manchin, a Democrat Senator from West Virginia, has played a significant role in energy policy. While often criticized for his support of fossil fuels, Manchin has also made contributions to clean energy, such as the bipartisan infrastructure bill and the Inflation Reduction Act. His retirement opens up the possibility of political shifts, potentially impacting the balance of power in the Senate. However, there are other strong Democrats in the Senate Energy Natural Resources Committee who can continue his work on critical energy and climate issues, ensuring a smooth transition in energy policy.
Examining nuances of fossil gas versus electric heating
Discussions around winter fuel costs often fail to consider the nuances of fossil gas versus electric heating. Declining gas prices have led to claims that electric heating is more expensive. However, these claims overlook the volatility of gas markets and the inefficiency of resistance heating compared to heat pumps. While some regions have higher electricity rates, high-efficiency heat pumps can significantly reduce energy consumption, resulting in cost savings. Moreover, reducing reliance on fossil gas is crucial for addressing climate change. It is important to understand the differences between heating options and consider long-term benefits of electrification.
It took 12 years to triple global renewables – and now we need to do it in eight years.
As the latest UN climate summit begins, there’s a proposal on the table to triple renewable energy capacity by 2030. Countries may agree to it in theory, but can the market meet it in practice?
This week, we’ll look at why this tripling is necessary, how it could be done, and what technologies will dominate.
Then, we’ll address a confusing narrative that has emerged around electric cars. We’re seeing a historic ramp-up in domestic EV production, and record sales. But many are fretting that the market is weakening – and automakers are pulling back. What gives?
We’ll end with the forecast: our picks for stories that tell us something about the near or far future.
Resources mentioned in the show:
BNEF: Tripling global renewables by 2030 Is necessary to achieve net zero
Carbon Brief: Why deals at COP28 to triple renewables and double efficiency are crucial
Latitude Media: To triple renewables capacity, solar is a boon – and a potential problem
NYT: A new law supercharged EV manufacturing, but not sales
Sign up for Latitude Media’s Frontier Forum on January 31, featuring Crux CEO Alfred Johnson, who will break down the budding market for clean energy tax credits. We’ll dissect current transactions and pricing, compare buyer and seller expectations, and look at where the market is headed in 2024.
This episode of Carbon Copy is brought to you by the Energy Show, hosted by Barry Cinnamon. Questioning if that cool new product or service really pencils out for customers? Curious about customer adoption of IRA policies? Wondering how the grid can keep up with home electrification? For the real-world scoop on clean energy technologies with a focus on the customer perspective, don’t miss the Energy Show at www.energyshow.biz.
The Carbon Copy is supported by FischTank PR, a specialized climatetech PR firm dedicated to bringing meaningful results for companies in sectors spanning grid edge, solar, energy storage, battery, EVs, alternative fuels, VC and green building. FischTank helps clients stand out in an increasingly competitive and noisy space. Visit FischTank PR to learn more.
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