In case you weren’t aware, the United States has targeted a 50 to 52 percent reduction in greenhouse gasses (GHG) by 2030. With this, President Biden is calling for 80 percent “clean power”, which includes renewable power such as geothermal energy, wind energy, and solar energy. Hence, it’s safe to say that there’ll be a few changes when it comes to energy generation if the U.S. is going to meet its goals.
And while the transition to “green energy” could take years to accomplish, it will take center stage in 2022. After all, the U.S. Energy Information Administration (EIA) has already forecasted a 10% increase in the country’s renewables in the coming year. Be on the lookout for these trends in the electrical market in 2022:
Green hydrogen is produced through the process of electrolysis. It generates renewable energy through solar and wind power, creating “clean energy” in different forms. What’s great about green hydrogen is that it produces pollutant-free byproducts, compared to fossil fuels that emit GHG. The U.S. is taking strides in green hydrogen production (take the Advanced Clean Energy Storage, for instance) and it won’t be long until it takes the lead. After all, Texas has 1,600 miles of pipeline infrastructure that’s perfect for transporting green hydrogen.
Another trend to watch out for in 2022 is the growth of solar energy. According to a report by the EIA, the electric power sector will see a 17-gigawatt growth in solar capacity. Similarly, S&P Global Market Intelligence forecasts an addition of 44-gigawatts of utility-scale solar, which is twice its forecast in 2021.
Despite the drop in solar panel installations in 2020, the sector anticipates an increase as the COVID-19 pandemic recedes. It’s worth mentioning that with the accessibility of clean energy, more people are bound to switch to solar. In fact, in the IEA’s World Energy Outlook, they found that solar power was the cheapest electricity source of 2020.
A report from the S&P Global Market Intelligence forecasts a “record year” for wind energy in 2022. It estimates that the U.S. will see an addition of 27-gigawatts of wind power. The sector has seen several innovations to meet the demand for renewable wind energy, such as airborne wind turbines. However, the top challenge that the sector is facing today is the sustainability of the blade. Hence, startups are considering bladeless wind turbines.
The EIA expects a 10% increase in renewable energy generation in 2022, with renewables such as wind being the second-most widespread source. If you’re thinking of making the switch to renewable energy, you can take advantage of the U.S. federal investment tax credit (ITC) or other incentives provided by your state or utility provider.
As the country nears its 2030 carbon-free target, the clean energy sector will gain increasing support. This, in turn, means that customers will have an easier time introducing renewables to their energy systems.