With over 75% of global greenhouse gas emissions and approximately 90% of all carbon dioxide emissions coming from fossil fuels like coal, oil, and gas, fossil fuels are by far the biggest cause of climate change. The science is clear: emissions must be cut by nearly half by 2030 and reach net-zero by 2050 in order to prevent the worst effects of climate change. In order to do this, we must stop using fossil fuels and make investments in clean, affordable, accessible, sustainable, and reliable renewable energy sources.
Current State of Renewables in the US
According to Statista, approximately 12 percent of the world’s renewable energy consumption occurs in the United States, which ranks second after China as one of the nations with the greatest renewable energy consumption rates. To slow down climate change, countries all around the world are producing more renewable energy. Over the last ten years, the production of renewable energy in the United States has more than doubled.
Recent events indicate that the renewable energy sector is accelerating, despite persistent regulatory uncertainty. The industry is positioned for future growth because of a combination of increased institutional investment and reinstated governmental backing. As significant private investments and changes in federal policy open up new growth prospects, the U.S. renewable energy industry is making fresh strides. A federal funding freeze has caused some clean energy projects to be delayed, but record-breaking private investments are boosting the industry’s confidence.
Decline of Fossil Fuels
Coal, oil, and natural gas are the three fossil fuels that have dominated the US energy mix and driven various economic sectors during the past century. However, that combination is changing. Coal-fired power generation, one of the most important uses of coal, has decreased by 40% in the United States over the past ten years.
The primary causes of coal’s decline have been the falling prices of renewable energy and natural gas. Prices for solar photovoltaics and wind energy have decreased by an average of 89% and 70% over the past ten years, respectively, surpassing those of coal. Additionally, for the first time in more than 130 years, the United States’ use of renewable energy exceeded that of coal in 2019.
Socio-economic Impacts of Transition
Imagine driving through the vast, open landscapes of Wyoming’s Powder River Basin in 2019. The sudden closure of two large coal mines throws the community into turmoil. Miners, once earning significantly above the state average, face unexpected unemployment. The local economy, heavily reliant on coal revenue that contributed over 40% of the state’s revenue in 2017, struggles with the loss of income. The rural nature of the region and its historical dependence on resource extraction make it difficult to attract new industries. While some efforts towards diversification exist, the community’s deep-seated loyalty to the coal industry and the lack of planning for a coal-free future create a challenging path forward.
How do we make sure that the advantages are shared fairly and that no communities are left behind as we rapidly implement renewable energy sources?
Emerging Technologies for a Sustainable Energy Future
The shift to a low-carbon global economy will require significant investment in a variety of related technologies and infrastructure in addition to electricity generation. In particular, the development and acceptance of technologies that facilitate the advancement of next-generation energy solutions and modernize the global energy infrastructure to facilitate a low-carbon future will be necessary to meet goals like the European Union’s net-zero target by 2050. While solar and wind power are important, the US must aggressively pursue advanced technologies like advanced nuclear, geothermal, and hydrogen to achieve a truly sustainable and resilient energy grid.
Advanced Nuclear Energy
Wind turbines and solar panels might be the first things that come to mind when you think of clean energy. However, did you know that using nuclear energy for civil purposes also lowers air pollution and carbon emissions? As the United States works to meet its climate targets and the demand for clean firm power increases, the country’s nuclear energy landscape is fast shifting.
Last year, the United States joined over 20 other countries in committing to increase the world’s nuclear energy capacity by 2050. Together, they pledged to support nuclear reactor development and construction, mobilize nuclear power investments, encourage robust supply chains, and acknowledge the significance of prolonging the lifespans of nuclear power facilities that are already in operation. By 2050, U.S. nuclear capacity might increase to almost 300 GW, the report claims. In fact, it is less expensive to build nuclear power facilities in conjunction with renewables and storage than it is to build nuclear or renewables alone.
In addition to lowering the amount of generation capacity, storage, and transportation required to maintain grid resilience, nuclear energy can supply clean electricity during the most costly hours when wind and solar are not available. The most economical system is made up of a variety of clean, firm generating, variable renewables, and energy storage. Combining nuclear energy with renewables and storage might reduce generating and transmission system costs by about 37% across a variety of power system models.
Small Modular Reactors (SMRs)
One third of the generating capacity of traditional nuclear power reactors can be produced by small modular reactors (SMRs), which are advanced nuclear reactors with a power capacity of up to 300 MW(e) per unit. Large amounts of low-carbon electricity can be produced using SMRs.
“To realize advanced nuclear energy’s role in the transition to clean energy, startup companies like TerraPower in Wyoming, Kairos Power in Tennessee, and X-energy in Texas are developing SMRs in the United States,” says Katy Huff, a former U.S. Department of Energy official and professor of nuclear engineering at the University of Illinois Urbana-Champaign.
The small size and modular architecture of SMRs are intrinsically tied to many of its advantages. Because of their smaller size, SMRs can be installed in areas that are unsuitable for larger nuclear power facilities. Proposed SMR designs are typically simpler than those of existing reactors, and the safety concept for SMRs frequently depends more on passive systems and the reactor’s built-in safety features, such as low power and operating pressure.
Heavy manufacturing and other energy-intensive industrial operations can be powered by SMRs without producing dangerous carbon dioxide emissions. Beyond only producing power, SMRs also lower carbon dioxide emissions. They can heat industrial operations (such as the production of steel and concrete), produce clean hydrogen and other transportation fuels, and even desalinate water in areas that are water-stressed.
Enhanced Geothermal Systems (EGS)
An enhanced geothermal system (EGS) is a man-made reservoir that is formed in areas with hot rock but little to no natural fluid saturation or permeability. Permeability is created in an EGS by carefully controlling the injection of fluid into the subsurface, which causes pre-existing cracks to reopen.
A higher permeability enables heat to be transferred to the surface, where electricity can be produced, and fluid to flow through the now-fractured rock. Advanced EGS technologies are still in their infancy, but they have already been successfully implemented on a pilot scale in Europe and are currently being used at two DOE-funded demonstration projects in the US.
EGS produces negligible or no greenhouse gas emissions. Other than water vapor that might be used for cooling, the majority of geothermal power plants employ a closed-loop binary cycle power plant and emit no greenhouse gases. EGS might expand the generation of geothermal energy across the country by promoting geothermal development outside of the western U.S.’s conventional hydrothermal zones. According to a 2006 Massachusetts Institute of Technology (MIT) research EGS may deliver 100 GWe of cost-competitive capacity in the next 50 years in the US alone.
Green Hydrogen
Green hydrogen has become one of the most intriguing and promising technologies for reducing carbon emissions as the world speeds up its shift to sustainable energy. This fuel, which is made by splitting water into hydrogen and oxygen using renewable energy sources like solar and wind, is becoming more popular in industries that have historically been difficult to decarbonize. Green hydrogen provides a flexible and scalable solution for heavy industry and transportation that has the potential to change the global energy scene.
More than $8 billion in investment for regional hydrogen hubs was announced by the United States in 2023 alone. As a future-proof option for their operations, multinational companies like Siemens, Toyota, and Shell are making significant investments in green hydrogen. Green hydrogen emits no emissions at all, in contrast to gray or blue hydrogen, which are derived from fossil fuels. Green hydrogen is viewed as a key solution, particularly for sectors of the economy where electrification is less viable. It is therefore essential to reach the worldwide net-zero carbon targets.
Advanced Energy Storage
The term Advanced Energy Storage, or AES, describes the process of storing the necessary energy for later use. Electricity is transformed into energy and then stored, for instance, before being transformed again into electricity for use at a later time. Energy supply and demand can be balanced on a daily, monthly, or seasonal basis with the use of an AES system.
A new high-tech facility at the Pacific Northwest National Lab (PNNL) in Richland, Washington, was announced by the U.S. Department of Energy’s (DOE) Office of Electricity (OE) in 2024 as part of its efforts to advance electric grid resilience, reliability, and security. This facility allows innovative researchers to test energy storage capabilities in a realistic environment. Together with PNNL, DOE’s Office of Electricity opened the 93,000-square-foot Grid Storage Launchpad (GSL), which will use advanced battery research to transform sustainable energy innovation.
Carbon Capture, Utilization, and Storage (CCUS)
Carbon dioxide (CO₂) emissions can be captured and stored permanently underground as one method for the United States to minimize its greenhouse gas emissions and reduce the impact of climate change. In the US, this process is already in place and is called carbon capture and storage (CCS).
Technologies that absorb the greenhouse gas carbon dioxide (CO₂) and use or safely store it underground to prevent its contribution to climate change are referred to as carbon capture, utilization, and storage (CCUS). The three steps of CCUS are capture, transport, and storage.
The process of capture involves separating CO2 from other gases that are either produced in the atmosphere or at big industrial facilities like steel mills, cement plants, petrochemical facilities, coal and gas power plants, etc. When the CO₂ is separated, it is compressed for transportation. Increasing the pressure will cause the CO₂ to behave more like a liquid. After dehydration, the compressed CO₂ is sent to the transportation system. In order to safely and permanently store the CO2, it is injected into deep underground rock formations after transportation, frequently at depths of one kilometer or more.
In the United States, there are now 15 CCS facilities in operation, according to a report in December 2023. When combined, they can absorb 0.4 percent of the country’s yearly CO2 emissions. There are now 121 more CCS facilities being developed or built. The completion of all of them would raise the country’s potential for CCS to 3% of current yearly CO₂ emissions.
The fact that CCS is typically employed in industries with the lowest CO₂ capture costs, like natural gas processing and the manufacturing of ammonia and ethanol, and that these industries contribute just a small portion of the nation’s overall CO₂ emissions, helps explain why those percentages are low. By forcing additional oil out of partially depleted oil wells with the captured CO₂, nearly all CCS installations recover a portion of their expenses.
Ocean Energy
Our planet can be saved by ocean energy. Ocean energy, otherwise known as hydrokinetic energy, marine energy, or blue energy, is an abundant renewable energy source that produces electricity by harnessing ocean water. Research and development is still ongoing for most ocean energy technologies. Ocean energy has a lot of promise, but it has little investment and confronts several financial, technological, and environmental obstacles.
Ocean energy lies at the nexus of water, marine, and energy. It is a clean and sustainable way to generate electricity in the energy industry since it supports the global transition to renewable energy sources and lowers greenhouse gas emissions.
Ocean energy systems can be categorized into four categories:
- Tidal Stream or Tidal Current Systems: Similar to putting wind turbines underwater, tidal stream (or tidal current) systems use electrical generators that are placed straight into the water’s stream. The generators capture the kinetic energy of the water as it passes through them and transform it into electrical power.
- Wave Energy Systems: Utilizing the motion of waves, wave energy systems generate electrical energy from the mechanical energy of wave motion.
- Tidal Barrage Systems: This process involves building dam-like structures over ocean inlets to create a tidal basin. During high tide, water enters the tidal barrage through installed turbines, filling the basin; during low tide, the water exits, producing energy in both directions.
- Ocean Thermal Energy Conversion (OTEC): In a closed-loop system, OTEC uses the temperature differential between warm surface water and much colder water at depth to operate a turbine that can produce energy.
In the US, a number of states have created and carried out their own marine strategies. Prior to the publication of the National Ocean Policy, certain plans were already in place. For example, Washington State enacted a Marine Spatial Plan for its Pacific Coast in 2018; other states are thinking about doing the same. Although State Task Forces headed by the Department of Interior and the Bureau of Ocean Energy Management (BOEM) have identified and set aside initial regions for the development of offshore wind, there are currently no nationally designated pre-selected sites for ocean energy development. Several states, including Rhode Island, Massachusetts, and Oregon, have also designated specific regions for the development of maritime energy.
Policy, Investment, and Innovation Driving the Transition
The American government has a plethora of options for finance and legislative interventions to help restructure industrial and energy systems, increase energy efficiency, address environmental pollution, and preserve and restore natural capital.
Lisa Jacobson, head of the Business Council for Sustainable Energy, stated in the WSJ that “the resilience of sustainable energy sectors is clear and enduring.” “We know that the clean energy transition is already hardwired into the U.S. economy, but recent federal policies have proven to be an important asset in accelerating technology deployment amid a turbulent market.”
Private Investment Driven by Federal Policies
Record-breaking amounts of private investment in developing the clean energy economy are being made possible by federal grants, loans, and tax incentives. According to the Clean Investment Monitor, the rise in clean energy has accounted for more than half of the quadrupling of U.S. investment in domestic clean energy manufacturing over the past two years, which is part of a boom in the pace of private investment. These investments, especially the $161 billion made in clean energy production and industrial decarbonization since the law’s passage, are putting the US in a position to be competitive in the global clean energy economy.
US Leadership in Hydrogen Investment
In the United States, an annual hydrogen capacity of around 10.4 million metric tons has been announced. With up to $20 billion in government expenditure through 2030 from the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act combined, the US offers the most supply-side support for hydrogen globally. In 2023, global investments in the energy transition exceeded $1.7 trillion, with the majority of countries building on previous contributions. With $676 billion invested, the US has made the second-largest investment after China.
International investment in renewable energy has almost tripled since the 2015 passage of the Paris Agreement. However, wealthy nations have accounted for the majority of this expansion. UNCTAD’s 2023 World Investment Report states that the annual investment gap across all SDG sectors has grown from $2.5 trillion in 2015 to over $4 trillion. The infrastructure for transportation, water, and electricity has the most inadequacies. According to WIR23, emerging nations require an estimated $2.2 trillion in energy investments annually.
For people and communities in the US looking to increase energy efficiency and make the transition to electricity, new investment programs are providing direct support. People who buy an electric vehicle (EV) can now receive federal tax credits and refunds, as EVs are less expensive to operate and maintain than gasoline-powered cars. The economy-wide shift to renewable energy will result in significant savings for homeowners even if they are not yet prepared to switch to electricity. According to some forecasts, the United States’ demand for fossil fuels will decline by up to 16 percent for petroleum and 20 percent for natural gas during the next ten years under current policy. Prices decrease when demand declines, which is beneficial to all parties.
Capital Requirements and Federal Legislation
According to McKinsey, the deployment of US climate solutions at scale will require more than $27 trillion in capital spending through 2050, or an average of $900 billion a year. Significant investments are included in a number of recent pieces of legislation to advance these goals. Nearly $400 billion in federal funds are allocated to clean energy through the Inflation Reduction Act (IRA). Additionally, the roughly $70 billion in clean energy technologies and demonstration projects supported under the Bipartisan Infrastructure Law (BIL) are expected to be amplified by IRA funding.
States should now think about how to access and use this funding to meet net-zero goals and promote a smooth energy transition, all the while promoting environmental equity (clean energy benefits for underserved communities, for instance) and economic development (transitioning workforces). Even though public funding can help with some of the transition, state governments may need to look at new financing options as well as contributions from both public and private capital to fill investment gaps.
Economic Advantage of Renewable Energy Technologies
The Wisconsin Energy Bureau states that “investing in locally accessible renewable energy creates more jobs, higher output, and greater earnings… than a continued reliance on imported fossil fuels.” Economic effects are maximized when a significant portion of inputs can be bought domestically and when an indigenous resource or technology can reasonably substitute an imported fuel.
Demand for renewable energy has increased along with global energy demand, opening up new markets and providing a once-in-a-generation financial opportunity to establish the US as a global leader in the development, production, and application of renewable energy technology. By 2030, it is anticipated that the expanding global market for ideas and technology related to renewable energy would be valued at least $23 trillion. Through the creation of a dependable, more affordable domestic supply chain, the support of opportunities in communities throughout the nation, and the creation of millions of stable, well-paying jobs, energy innovation keeps America competitive in the global energy market.
With renewable energy technologies like solar panels, wind turbines, hydropower systems, and geothermal systems accounting for more than 84% of net new electricity generation jobs in 2022, jobs related to renewable energy generation currently employ three times as many people as jobs related to traditional energy sources.
Potential Benefits of a Successful Energy Transition
- Reduce emissions significantly: Nearly all direct greenhouse gas emissions are produced by renewable energy sources. The only realistic way to address climate change is to reduce GHG emissions, perhaps to net zero.
- Long-term cost savings: since the source is limitless. Long-term, using renewable energy will be more cost-effective and efficient with a small initial investment.
- Reducing reliance on fossil fuels: When there is uncertainty and volatility, relying solely on one source, like coal, will be extremely susceptible. For instance, rolling blackouts in isolated locations.
- Higher ESG ratings due to actual benefits to society and the environment.
Challenges and Uncertainties
Potential Policy Reversals and Obstacles
Donald Trump’s return to the White House, a leader who has made it apparent that he prefers fossil fuels, has made the nation’s transition to renewable energy more difficult. The present government is blocking wind energy leasing and permits, suspending funds, and threatening to repeal laws like the Inflation Reduction Act and Bipar.
In addition to putting up new obstacles, the Trump administration threatens to make some of the ongoing problems with renewable energy worse. In order to reverse actions taken by the Biden administration, promote the development of fossil fuels, facilitate LNG exports, relax licensing requirements, halt offshore wind leases, limit the adoption of electric vehicles, and freeze fund disbursements, the administration has already issued a number of executive orders pertaining to energy.
In 2023 and 2024, sales of electric vehicles (EVs) and solar deployment both set new marks. New domestic clean energy production facilities are springing up all across the country, and renewables currently account for the majority of new power generation capacity.
But headwinds are also becoming more powerful. Deployment is being slowed by a number of ongoing hurdles, such as high interest rates, persistent supply chain problems, permitting and siting difficulties, inadequate grid capacity, and large interconnection queues. At a time when clean power development should be accelerating, these issues have been impeding its progress.
Growing Local Opposition and Siting Restrictions
One of the main concerns for new growth is still local opposition to sustainable energy initiatives. In 2024, there was a notable increase in municipal resistance to clean energy programs and initiatives, some of which led to severe siting regulations or complete bans. In 2024, clean energy bans were implemented in around 15% of U.S. counties, a more than 110% rise from the year before. According to a Columbia Law School study, there are 19 state-level laws that are sufficiently stringent to forbid the establishment of renewable energy projects and 395 local clean energy siting limitations in 41 states.
While a proposal to do so in Michigan has encountered strong opposition, other states, like California, New York, and Virginia, have implemented laws to speed up siting by shifting some obligations from the municipal to the state level. As new laws are put into place, these state and local authority difficulties will probably continue to arise.
Conclusion
In addition to creating jobs, increasing energy security, and enhancing the nation’s economic competitiveness, the clean energy sector is well-positioned to supply the much-needed power that Americans require. We encourage policymakers, businesses, and individuals to support the development and deployment of advanced green energy technologies.
Accelerating Renewable Energy Development
Growing concerns about resource depletion, climate change, and environmental degradation have prompted more research, funding, and cooperation in the renewable energy industry. America’s governments, businesses, and research institutes should work together to develop and implement renewable energy solutions more quickly. This collaborative momentum will result in remarkable results that are lowering costs and boosting the capacity and efficiency of green energy sources, making them more competitive with energy from fossil fuels.
The United States, propelled by massive investments and transformative policies, is not merely participating in the global energy transition; it is rapidly becoming a leader. With solar and wind power breaking records, electric vehicles reshaping the roads, and industries embracing sustainable practices, the country is witnessing a fundamental shift that will redefine its economy and relationship with the planet. This is not just about reducing emissions; it’s about building a resilient, prosperous, and sustainable future, where the power of the sun and wind fuels the country’s cities and industries, and where innovation ensures that cleaner, cheaper energy powers the American dream for generations to come.
Image Credit: American Public Power Association.
