Full Title: Big Opportunities in the US Energy Transition
Author(s): Wood Mackenzie
Publisher(s): Wood Mackenzie and Shell Energy
Publication Date: April 13, 2023
Full Text: Download Resource
The energy transition is very real, and this reality is accelerating. The convergence of climate and environmental concerns, legislation, and advances in technology are creating a new energy environment that is building towards a sustainable, reliable, safe, and affordable energy future.
Recent energy transition developments include the recent passage of the Inflation Reduction Act of 2022 with over $360 billion for energy investment and an additional US federal government commitment of $US 900 million to build out an EV charging station network as new energy storage technologies coming online. From these developments at the federal government level, we see the utility and energy industry also moving aggressively towards renewable energy goals like the 2030 100% clean energy goal at Sacramento Municipal Utility District. These developments all suggest that now is the time to assess where we are on this journey and the critical next steps in meeting the challenges on the path to a cleaner energy future.
These funding and goal-setting initiatives are mirrored by the rapid growth of renewable energy resources. For instance, analysts at Wood Mackenzie estimate that by 2026, global renewable-electricity capacity (solar + wind) will rise 68 percent from 2020 to 2026. Meanwhile, according to research and advisory firm MarketsandMarkets, the global microgrid market is expected to grow from $US 26.9 billion in 2022 to $US 63.2 billion by 2027. Clearly, the energy landscape is shifting for utilities and energy providers, but how is this impacting their customers, particularly their largest ones?