Benefits of Clean Energy

This visual helps explain 3 concepts that A LOT of people forget about solar☀️   Solar energy’s fuel (sunshine) is free and delivered daily.   Therefore, electricity from solar does not include the cost of each marginal unit of fuel. That makes sense to people.   But the full implications of an energy system built upon a zero-cost, abundant fuel source are often still dramatically underestimated.   There are three other kinds of savings that solar provides:    Infrastructure Savings – As shown in the graphic, the world spends billions of dollars every year extracting oil, gas, and coal and transporting to the places it will be burned. The infrastructure to mine, refine, and move these fuels from point A to point B, whether by boat, rail, or pipeline, requires regular maintenance and TONS of investment. With solar, the sun does it all for us, delivering usable photons every morning.   Predictability Savings – When you’re relying on a globally traded commodity to produce electricity, the final cost of each gigawatt can fluctuate with the current price of oil and coal. Market uncertainty can send the price of these commodities (and the final price for electricity) soaring on a whim. But it doesn’t need to be this way. Once a solar farm is installed, the cost of each unit of electricity is basically fixed. This helps utilities better predict their costs and that’s a huge benefit to consumers.   Energy Independence Savings – Because oil, gas, and coal rely on complex international supply chains and lots of global infrastructure, there is a lot more that can go wrong. Geopolitical shocks, natural disasters, port congestion, and accidents (remember the Suez Canal blockage?) can all impact the predictability and reliability of coal and gas generation. No one can embargo the sun or interrupt its delivery to us, so solar energy is fundamentally more local and more independent.   I think it’s important to explain these hidden savings when talking to naysayers because, while they may understand that free sunshine = free fuel, they may not understand just how much they’re paying for the infrastructure, uncertainty, and volatility of fossil fuels.

Electric trucks like this giant are already saving Fortescue $300-400 million per year on avoided fuel costs alone. The decarbonisation of #mining is happening right now and it makes economic sense. Liebherr's T264 battery electric haul truck stands higher than a double-storey house, weighs 176 tonnes and has a payload of 240 tonnes. It's not only electric, but also drives autonomously! Its 3.2 MWh battery will be charged in just half an hour by a 6 MW charger than Fortescue is developing, which will be the world's most powerful EV charger. Fortescue has ordered 360 of these trucks as part of a $4 billion deal with Liebherr to electrify operations at its enormous iron ore mines. It has set itself a target of eliminating emissions from its Australian iron ore operations by 2030. And it's clear that this needs to be "real zero" - rather than relying on carbon credits and offsets to reach "net zero", as most big corporates do. The trucks will use electric power systems developed by Fortescue Zero in the UK, a contract that will deliver revenues of more than $1 billion to supply the trucks for the iron ore mines as well as to third parties. Fuel and energy costs are Fortescue's biggest operating costs as well as largest source of emissions. By electrifying operations like this it will be able to kill two birds with one stone. Onwards and upwards! Image credit: Liebherr #energy #sustainability #renewables #energytransition

Grid bottlenecks are a feature — not a bug — of the energy transition. For years, we viewed economics as the main hurdle to scaling clean energy. High costs for wind, solar, heat pumps, and storage dominated the conversation. But the world has changed. Thanks to extraordinary innovation and dramatic cost reductions in renewables and electrification technologies, the bottlenecks we face today are different. They’re no longer about whether clean energy is affordable — it is. Instead, the challenge is whether our energy systems can evolve quickly enough to integrate it. A recent Financial Times piece highlights this clearly: across Europe, the rapid build-out of renewable generation now outpaces the ability of grids to move electricity to where it’s needed. Curtailment, congestion, and long queues for grid connections already cost billions annually — and without decisive action, these costs will grow. This isn’t a sign of failure. It’s a sign of success. It means the transition is happening faster than the infrastructure built for the fossil era can handle. The rise of decentralised, variable renewables and electrified heating and transport requires a fundamentally different approach to planning — one that anticipates growth rather than reacts to it. The EU’s move toward more coordinated, top-down scenario building and cross-border grid planning recognises exactly this. Better alignment between countries and system operators, faster permitting, and prioritisation of critical projects are essential steps to unlock the full value of cheap clean energy. Because every euro lost to bottlenecks is not a cost of climate action — it’s a cost of not modernising our grids fast enough. The more successful we are in deploying renewables and electrification, the more urgently we must upgrade and expand our grids. Grid constraints are not a reason to slow down. They’re a reason to speed up the transformation of an energy system that was never designed for the technologies now powering our transition.

Picture of the Week: European power prices are now lower than pre-Ukrainian times! The significant reduction in #European wholesale power prices in 2024 compared to 2021, especially in countries like #Spain and #Portugal, can be attributed to several key factors: 1. Expansion of Renewable Energy: Spain and Portugal have made substantial investments in #renewable energy, particularly #solar and #wind power. Since the onset of the Ukrainian crisis, these two countries have added nearly 20 GW of solar and wind capacity, which now represents about 15% of their total installed electricity capacity. This massive build-out of renewables has played a crucial role in reducing reliance on fossil fuels and lowering electricity prices. As a result, Spain has seen a dramatic increase in the share of #electricity generated from #renewables, rising from 51% in 2021 to 65% in 2024. This shift has significantly contributed to reducing wholesale power prices by half compared to 2021 levels. 2. Diversification Away from Russian Gas: The European Union, along with individual countries, has made concerted efforts to reduce dependence on #Russian #naturalgas, which was a major factor driving high energy prices during the 2022/2023 period. These efforts included securing alternative gas supplies, increasing LNG imports, and enhancing gas storage capacities. The shift away from Russian gas, coupled with a mild winter and lower overall demand for gas, has eased pressure on gas prices, which in turn has lowered electricity prices across much of Europe. 3. Energy Efficiency Measures: Governments across Europe have implemented #energyefficiency programs aimed at reducing overall energy consumption. These measures, along with public campaigns promoting energy savings, have contributed to reducing electricity demand, helping to stabilize or lower prices. 4. Government and Industry Cooperation: There has been close cooperation between governments and energy companies to stabilize the energy market.

“The error is to pay little attention to #energyefficiency as a driver of the energy transition. However, energy efficiency has thus far driven more emission reductions than #renewables. For example, since 2010 gains in energy intensity have averaged 1.7% a year, saving about ten times as much primary energy as #solar and #wind added, according to IEA’s data. In 2022, energy efficiency saved over 3 times as much primary energy as the growth of solar and wind. Despite the magnitude of efficiency gains, renewables get nearly all the headlines. As Amory Lovins remarks, solar panels are highly visible whereas unused energy is invisible, almost unimaginable and as a result gets little attention. Lovins first highlighted the power of energy efficiency to drive change 40 years ago and it has been a constant and underestimated feature of the energy transition since. Furthermore, if the efficiency gains of the past were large, they are about to get larger. There are still huge untapped opportunities for energy efficiency to wring more work from fewer inputs. Material innovation, integrative design and more digitization will continue to create smarter, leaner and lighter energy systems. In addition to this, the shift from inefficient fossil-fueled electricity generation to solar and wind uses around 60% less primary energy, the shift from oil to electricity in transport uses around 75% less primary energy, and the shift from thermal boilers to heat pumps uses around 75% less primary energy. As these technologies continue to grow on their S-curves, so they will increase the annual rate of efficiency gains. As a result, the aspiration to double efficiency gains by 2030 is much more achievable than commonly perceived.”

I’m happy to share some big news: for the fifth year in a row, Amazon is the largest corporate purchaser of renewable energy in the world. Transitioning to carbon-free energy sources is one of the fastest ways we can address climate change. It’s why we’ve invested billions of dollars in hundreds of solar and wind projects around the world. But you don’t need to be a company of our size to make a difference. If you’re exploring renewables energy investments, here are three helpful things we’ve learned along the way: 1) Location = impact. We’re supporting projects in regions where they can have the greatest impact – including locations that rely heavily on fossil fuels. For instance, we invested in nine solar and wind projects in India, where the grid is primarily powered by coal. They’re expected to help avoid an estimated 55 times more carbon than if they were built in Sweden, which has one of the world’s most decarbonized grids. As more projects become operational, we’re seeing how they positively impact the grid – and local communities. In Mississippi, for example, three solar wind farms backed by Amazon account for nearly a quarter of the state’s operational solar power! 2) Open + collaborative mindset. We started with just a handful of projects when The Climate Pledge launched. Over the years, we’ve learned the value of collaborating across sectors – we’ve worked with various energy companies, utilities and experts outside Amazon. That’s all led to us supporting 600+ wind and solar projects in nearly 30 countries – which are expected to produce the same amount of energy it takes to power more than 8 million U.S. homes. 3) Build great teams. We recruited a diverse array of energy experts and gave them room to Think Big, because we believe innovation is critical to evolution. When smart people who care about our planet are empowered to find solutions, change accelerates. We’re also investing in other sources of carbon-free energy, like nuclear – more to come on that this year! https://lnkd.in/d9sN_Pq2 #energy #carbonfree #sustainability #renewablenergy

25 years ago: Solar was the future. 10 years ago: Panels were booming worldwide. Today: They’re piling up with nowhere to go. Solar power changed the game. But now we’re facing a new problem: What happens when clean energy dies? I recently came across this image shared by Carlos Terol. And it got me thinking. By 2050, over 200 million tonnes of solar panels will be out of use. And right now, we have almost no infrastructure to recycle them. Here’s why that matters: → Over 2.5 billion panels are already installed. → Their lifespan? About 25 years. → Most will end up in landfills without intervention. → And we’ll lose rare, valuable materials like silver and silicon. That’s not just waste. It’s a missed opportunity worth billions. But we have a window. France opened the first dedicated solar recycling plant. They are recovering up to 99% of a panel’s materials. Silver. Copper. Silicon. Glass. All back in the loop. If this model scales, by 2050 we could: - Recover $15B+ worth of materials. - Produce 2 billion new panels. - Add 630 GWh of clean power without mining a thing. The future of clean energy depends on what we do with the past. And if you ask me, I’d say it’s definitely possible. We can build a circular solar economy if we act now. ♻️ Share this with your network today. 👉 Follow me for more content like this. Thanks for sharing this image, Carlos Terol.

Final 45V (Hydrogen Production Tax Credit) rules announced today, by the U.S. Department of the Treasury and IRS, after consideration of roughly 30,000 public comments over the past year. This provides additional clarity and flexibility that will help facilitate clean hydrogen investment. Examples of key changes include: Incrementality: Additional pathways provided for: nuclear plant retirement risk, State policies that meet certain criteria (currently California and Washington), and new carbon capture and sequestration (CCS). Time matching: Extends the transition from annual to hourly matching starting in 2030 instead of 2028. (Once hourly matching is required, the final rules allow hydrogen producers to determine electricity-related lifecycle emissions on an hourly basis as long as the annual emissions of the hydrogen production process are under 45V’s limit of 4 kg of CO2e per kg of hydrogen produced. This option will provide additional investment certainty because it helps producers avoid losing much of the credit value if they cannot procure Energy Attribute Certificates (EACs) for a limited number of hours during the year. The final regulations also provide rules for determining eligibility of hydrogen produced using methane reforming technologies, including with CCS, or with the use of natural gas alternatives such as renewable natural gas (RNG) or coal mine methane. The final rules will enable investment certainty by allowing the option of using the version of the 45VH2-GREET model that was the most recent when the facility began construction. Stay tuned: DOE will soon release an updated version of the 45VH2-GREET model to calculate the tax credit. See below for details: https://lnkd.in/evNn6RqT

𝗪𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝗲𝗱 𝘁𝗼 𝗽𝗼𝘄𝗲𝗿 𝗶𝗻 𝗦𝗽𝗮𝗶𝗻? 𝗔𝗻𝗱 𝘄𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝗶𝘁 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗰𝗹𝗲𝗮𝗻 𝗲𝗻𝗲𝗿𝗴𝘆 𝘁𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻? Earlier this week, Spain and Portugal faced an unprecedented blackout lasting nearly 18 hours, affecting millions. It’s a wake-up call: not about renewables per se, but about the fragility of our grid systems in the face of rapid energy transition. Here's what you need to know about the situation: 𝗪𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝗲𝗱? Spain’s power grid experienced a sudden generation loss of 15 GW—about 60% of running capacity. This triggered cascading failures across the Iberian Peninsula. 𝗪𝗮𝘀 𝘁𝗵𝗶𝘀 𝗰𝗮𝘂𝘀𝗲𝗱 𝗯𝘆 𝗿𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲𝘀? No, at least not directly. Renewables now generate over half of Spain’s electricity, but they don’t provide rotational inertia like fossil and nuclear plants. Without proper grid balancing, via batteries or backup power, this creates vulnerabilities. 20𝘁𝗵 𝗰𝗲𝗻𝘁𝘂𝗿𝘆 𝗴𝗿𝗶𝗱𝘀 𝗶𝗻 𝗮 21𝘀𝘁 𝗰𝗲𝗻𝘁𝘂𝗿𝘆 𝗲𝗻𝗲𝗿𝗴𝘆 𝘄𝗼𝗿𝗹𝗱 We’ve modernized power generation. But grid infrastructure hasn’t kept pace. Some blame a rare atmospheric phenomenon causing vibrations and triggering shutoffs. Others question that theory. But one thing is clear: weather-related risks will only grow with climate change. Another challenge is the double-edged sword of interconnection. Portugal relies heavily on Spain for electricity. European interconnection helps balance loads, but can also spread risk. The real lesson is that grid resilience must now be as important as clean energy deployment. 𝗪𝗵𝗮𝘁 𝘀𝗵𝗼𝘂𝗹𝗱 𝗽𝗼𝗹𝗶𝗰𝘆𝗺𝗮𝗸𝗲𝗿𝘀 𝗱𝗼? Not panic and turn back to coal, but invest heavily in modern, resilient grids. Smart grids, batteries, and demand response systems are necessities in a volatile world. 𝗪𝗵𝗮𝘁 𝘀𝗵𝗼𝘂𝗹𝗱 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗱𝗼? Treat energy like insurance. Know your backup options, model disruption risks, and consider investing in onsite renewables and storage. 𝗪𝗮𝗻𝘁 𝘁𝗼 𝗴𝗼 𝗱𝗲𝗲𝗽𝗲𝗿? In this week’s newsletter, we helped our subscribers learn about what happened in Spain, assess the evolving role of renewables and resilience, and develop practical steps for business continuity. #climate #energy #renewables #Spain #blackout #decarbonization #grid #electricity #resilience

Batteries are a vital part of the clean energy transition. Here's why:   • They're the fastest growing clean technology on the market • They help meet climate goals & ensure energy security • They bring down emissions in power & transport   Batteries aren't just for powering your smartphone. In 2016, the energy sector accounted for around 50% of global demand for #batteries, about the same share as electronic devices. By 2023, energy's share had risen above 90% - in a market 10 times the size. More in the International Energy Agency (IEA) Energy Agency’s new report → https://iea.li/3WeYRbv   Thanks to the rapid decline of battery costs – 90% since 2010 – they're speeding up opportunities to cut emissions in road transport & electricity. In 2023, electric car sales rose to a record of almost 14 million. Battery storage deployment in the power sector more than doubled.   Batteries are a game-changer. IEA’s analysis shows utility-scale batteries paired with solar PV are already competitive with new coal plants in some countries like India. In just the next few years, batteries & #solar will be cheaper than new natural gas plants in the US & new coal in China.   Reaching energy & climate targets hinges on whether batteries scale up fast enough. More than half the job that we need to do on cutting emissions will rely on batteries. Energy storage, led by batteries, will need to increase sixfold by 2030 to help meet the goals set at #COP28.   Battery manufacturing capacity has more than tripled in the last 3 years. And completing all announced projects would be sufficient to meet demand to 2030 in a 1.5C-aligned pathway. But manufacturing remains too concentrated in only a few countries, creating supply chains risks.   Ensuring sufficient critical mineral supplies will be key to scaling up batteries quickly. New supply investments & demand-side measures could help address these issues. Recycling, size adjustments & innovation in battery chemistries could cut mineral consumption by 25% in 2030.   To learn more about IEA’s new Special Report on Batteries & Secure Energy Transitions, read the full report, available online → https://iea.li/3Ud24px   And join lead authors Laura Cozzi, Brent Wanner & me for the LIVE launch event from 11:00 CEST → https://iea.li/49Mmxaw