Clean energy in the United States has reached a significant milestone – its cost is now on par with energy produced from burning fossil fuels.
This achievement is attributed to policy measures, particularly President Joe Biden’s climate legislation, the Inflation Reduction Act (IRA). However, a recent report from the Clean Investment Monitor suggests that non-cost barriers are hindering the country’s transition to renewables.
The IRA passed in 2022, is a substantial investment aimed at reducing greenhouse gas (GHG) emissions by approximately 40 percent by 2030. The report indicates that the IRA is expected to meet its emissions reduction goal, marking a crucial step in addressing the climate crisis.
Despite the positive developments, challenges persist. The report identifies local opposition to renewables and delays in grid connection as major obstacles to the clean energy transition. While the cost of clean energy has become competitive with fossil fuels, the pace of the transition is being hampered by factors such as manufacturing constraints, grid connectivity issues, and growing resistance to renewable projects.
Trevor Houser, a lead author of the report, acknowledges the success of two decades of policy efforts in reducing the cost of clean energy. However, he emphasizes the need to accelerate the transition, with concerns about local acceptance, project permitting, and construction speed.
One significant challenge is the larger land footprint required for solar and wind power compared to coal or fossil gas plants. This has led to tension, as communities express support for renewable energy in general but resist projects proposed in their vicinity. Overcoming these challenges will be crucial to achieving a swift and effective clean energy transition in the United States.