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Clean energy investment at record levels

July 26, 2024 By EarthWise Leave a Comment

According to a new study by the International Energy Agency, global clean energy investment will be nearly twice that of fossil fuels this year. The surging funding for clean energy is being driven by a combination of lower costs for renewable energy and by improving supply chains.

In 2024, the world’s investments in energy are expected to surpass $3 trillion dollars for the first time. About $2 trillion of that will be directed at green technologies that include renewable power sources, grids, and energy storage; electric vehicles; low-emission fuels; nuclear power; and heat pumps and efficiency improvements. The remaining amount of just over $1 trillion will fund oil, gas, and oil projects.

The record growth in clean energy investments is taking place in spite of challenging economic conditions related to high interest rates, which demonstrates the momentum behind the global energy transition.

The IEA report does caution that there are big imbalances and shortages in energy investment in various places around the world. For example, there is a low amount of green energy spending in developing and emerging economies outside of China. Countries like Brazil and India are leading the way for this sector by having investments in excess of $300 billion.

More money is currently going into solar power development than all other electricity generation technologies combined. In 2024, solar photovoltaic power investment is set to grow to $500 billion as the falling price of solar modules spurs new investments.

The largest renewable investments will come from China at $675 billion, followed by Europe and the U.S. at $370 billion and $315 billion, respectively.

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Global Clean Energy Investment Will Nearly Double That of Fossil Fuels in 2024: IEA Report

Photo, posted October 2, 2015, courtesy of John Englart via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

EV growth and oil demand

June 7, 2024 By EarthWise Leave a Comment

There has been lots of talk recently about the transition to electric vehicles sputtering out. Several automakers have delayed their EV programs citing reduced demand for the vehicles and lack of profitability. In the bigger picture, the auto industry as a whole is in a rough patch as rising interest rates and other factors have reduced car buying.

Despite all this doom and gloom talk, sales of electric vehicles will hit an all-time high this year. Adoption of EVs is accelerating more quickly than many people expected and government policies in China, the United States, and Europe have had a significant impact on vehicle sales. In China, 37% of new cars sold last year were electric. The country hit its 2025 target three years early and this year the figure could hit 45%.

But even as electric car sales rapidly increase, oil demand has continued to climb, reaching 100 million barrels a day, slightly more than it was before the COVID-19 pandemic. The International Energy Agency expects that oil demand will peak before the end of this decade, but oil consumption could remain strong for decades unless there is further policy action encouraging the transition away from it.

Some experts say that the IEA’s models don’t take into account how quickly the world is changing. New emission rules are expected to speed the adoption of EVs and plug-in hybrids. In addition, falling battery costs are making the economics of electric vehicles increasingly attractive. If EV adoption accelerates more rapidly than these models predict, then oil consumption could drop much more quickly.

However, the oil industry is deeply embedded in modern life and is not likely to fade away without a fight.

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EV Sales Are Taking Off. Why Is Oil Demand Still Climbing?

Photo, posted September 9, 2020, courtesy of Chris Yarzab via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

New York’s first offshore wind farm

December 14, 2023 By EarthWise Leave a Comment

New York has set a target of installing 9 GW of offshore wind capacity by 2035. The first offshore wind farm in the state – South Fork Wind – was approved by the Long Island Power Authority in 2017. Construction began in 2022.

South Fork Wind Farm is a 132 MW project sited 35 miles offshore from Montauk, New York. Early this year, the subsea power export cable was installed by Nexans, a cable and optical fiber company. In June, the project reached its “steel in the water” milestone with the installation of the farm’s first monopile foundation.

In November, the first of South Fork Wind’s 12 Siemens Gamesa wind turbine generators was hoisted into place by the offshore construction team. The turbines are being installed by a specialized vessel called the Aeolus. Turbine installation involves using a crane to place the steel turbine tower onto the foundation. The nacelle and rotor are then installed on top of the tower. Finally, the blades are bolted one by one to the rotor.

All 12 turbines for the project are expected to be installed by the end of this year or by early 2024.

There have been setbacks for the U.S. offshore wind industry in recent times. Two projects in New Jersey have been scrapped because of supply chain issues. Rhode Island Energy pulled out of a project citing higher interest rates, increased expenses, and problems with tax credits.

But despite these setbacks, the industry continues to make headway. Vineyard Wind in Massachusetts is on the precipice of delivering its first power to the grid and the pipeline of additional projects continues to grow.

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First turbine installed at South Fork Wind, New York’s first offshore wind farm

Photo, posted August 7, 2013, courtesy of SSE / Department of Energy and Climate Change via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio