Supply shocks force US, Europe to accelerate transition to renewables

Jun 11, 2022 News

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Kaieteur News – As the supply lines to fossil fuel remains shaky, the United States (US) government has instituted new measures to ensure a stable, clean and cheap generation of electricity for its people.

On June 6 last, President Joe Biden issued presidential determinations providing the U.S. Department of Energy (DOE) with the authority to utilize the Defense Production Act (DPA) to accelerate domestic production of five key energy technologies. These include solar; transformers and electric grid components; heat pumps; insulation and electrolyzers, fuel cells, and platinum group metals.
It was noted that the determinations are part of the President and Vice President Kamala Harris’ plan to lower energy costs for families, strengthen national security, and achieve lasting American energy independence that reduces demand for fossil fuels and bolsters the country’s clean energy economy.
The US Secretary of Energy, Jennifer Granholm said, “President Biden has invoked the Defense Production Act so that the U.S. can take ownership of its clean energy independence,” adding that “For too long the nation’s clean energy supply chain has been over-reliant on foreign sources and adversarial nations”. The new orders, according to the Energy Secretary, will assist the DOE in strengthening its domestic solar, heat pump and grid manufacturing industries while fortifying America’s economic security and creating good-paying jobs, all while lowering utility costs.
Meanwhile, the Deputy Secretary of Defense, Dr. Kathleen Hicks explained that “Reducing America’s dependence on gas and oil is critical to U.S. national security,” citing the vulnerability of the current fossil fuel supply lines. She pointed out, “The actions President Biden announced today will help strengthen our supply chains and ensure that the United States is a leader in producing the energy technologies that are essential to our future success. They will also help accelerate the transition toward clean energy technologies that can help strengthen military capability while creating good jobs for American workers.”
The demand for clean energy technologies such as solar panels, heat pumps, and electrolyzers for hydrogen has increased significantly as the costs of these technologies have plummeted over the last decade. Cognizant of this shift to cleaner energy, the United States said that unless it expands new manufacturing, processing, and installation capacity, it will be forced to continue to rely on clean energy imports—exposing the nation to supply chain vulnerabilities, while simultaneously forcing it to miss out on the enormous job opportunities associated with the energy transition.
DPA authority, with the necessary funding appropriated by Congress, will allow the federal government to invest in companies that can build clean energy facilities, expand clean energy manufacturing, process clean energy components, and install clean energy technologies for consumers. Already, Solar photovoltaic (PV) energy is the largest source of new U.S. electricity generation capacity. However, this option does not meet the current electricity demand, hence the pursuit of other sustainable options.
The recent move by the United States government is attributed to the ongoing war between Russia and Ukraine. In 2021, the European state of Russia supplied the globe with about 14 percent of its total supply, the International Energy Agency said. Several countries that are against the invasion of Ukraine had cut ties with the country thereby impacting their fossil supply lines.
Meanwhile, other European states have also stepped up the progression to renewable energy sources as a result of the Russian invasion of its neighbouring state.
The European Union (EU) recently announced a new energy plan that will, according to a leaked draft, “scale up renewable energy in Europe by mobilising additional investments, removing roadblocks to renewables roll-out, and empowering consumers to play an active role in the energy market.” The strategy, which aims to cut EU dependency on Russian gas by two-thirds this year and completely end reliance on Russian gas supplies “well before 2030,” includes fast-tracked deployment of solar energy and renewable hydrogen, the quick implementation of far-reaching energy-efficiency measures, and the production of 35 billion cubic meters of biogas per year by 2030.
According to climate.org Germany, the largest importer of fossil fuels from Russia, is increasing the planned share of renewable electricity to 80 percent by 2030, up from 62 percent by 2030 under previous commitments. Together with the Netherlands, Denmark and Belgium, the country also plans to build 150 Gigawatts (GW) of offshore wind by 2050. Another top Russian fossil fuel importer – Italy, increased the planned share of renewables electricity from 60 to 70 percent by 2030.

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