Investment in wind and solar power plants in the United States reached unprecedented levels last year, but the pace of expansion still lags behind what is necessary to meet the nation's ambitious climate change targets, a comprehensive analysis revealed on Wednesday.
A collaborative report by researchers from Princeton University, Massachusetts Institute of Technology, Rhodium Group, and the non-profit Energy Innovation evaluated the progress of U.S. investments required to achieve a 40% reduction in greenhouse gas emissions by 2030. This objective, outlined in President Joe Biden's landmark 2022 climate change legislation, the Inflation Reduction Act (IRA), serves as a pivotal benchmark for the nation's climate action agenda.
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The report's findings present a mixed picture of progress. While investments in large-scale clean energy installations for utilities have surged, they face significant obstacles such as permitting and grid interconnection delays, as well as challenges in sourcing equipment. On the other hand, sales of electric vehicles (EVs) are meeting researchers' projections, buoyed by generous tax credits provided by the IRA for EVs and clean energy technologies like wind and solar farms.
Last year, zero-emission vehicles accounted for 9.2% of light-duty vehicle sales, surpassing expectations and falling within the projected range of 8.1% to 9.4%. However, while EV sales are anticipated to continue growing this year, the rate of increase is expected to be lower than last year's impressive 50%. Nevertheless, as long as growth remains within the range of 30% to 40%, it is projected to align with U.S. climate goals.
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In terms of zero-emissions electricity generation and storage, there was a remarkable 32% increase last year, reaching 32.3 gigawatts. However, this figure falls short of the research groups' models, which anticipated annual additions of 46 to 79 gigawatts. To remain on course, the U.S. must add between 60 to 127 gigawatts of capacity this year, a target likely to be challenging to achieve, according to the report.
Looking ahead, the groups emphasized the need for accelerated clean energy installations, projecting an increase to between 70 and 126 gigawatts per year beyond 2024. These efforts are critical for the nation to meet its climate objectives and transition towards a sustainable, low-carbon future.
