Full Title: Renewable-Energy Development in a Net-Zero World: Disrupted Supply Chains
Author(s): Alberto Bettoli, Florian Heineke, Nadine Janecke, Thomas Nyheim, Andreas Schlosser, Sophia Spitzer, Christian Staudt, Raffael Winter, and Jakub Zivansky
Publisher(s): McKinsey & Company
Publication Date: February 17, 2023
Full Text: Download Resource
Description (excerpt):
As countries around the world work to meet aggressive decarbonization goals, energy from wind and solar sources are a beacon of hope. Carbon-free, inherently abundant, and increasingly affordable, these renewable sources remain a vital pathway to achieving global net-zero carbon emissions by 2050.
McKinsey estimates that between 2021 and 2030, planned global electricity generation from committed solar and on- and offshore wind projects (excluding China) will more than triple, from 125 gigawatts to 459 gigawatts (Exhibit 1). This could further accelerate as countries seek to make renewables part of their strategy to address the current geopolitical energy crisis. The European Commission’s recent REPowerEU proposal, for instance, seeks to boost the continent’s share of electricity generation from renewables to 45 percent by 2030 (up from a target of 40 percent). In the United States, the Inflation Reduction Act, which provides a comprehensive package of financial incentives for renewable-energy development, could also stimulate additional wind and solar capacity.