[the_ad id="121217"]

popular articles

American Jobs Plan: renewable energies in the spotlight

Please share:

The $2,000 billion American Jobs Plan aims to fully decarbonize the U.S. economy by 2050. Unveiled on March 31, this is the most ambitious energy plan the United States has ever seen. Nevertheless, this plan entails a real risk of increased dependence on China for low-carbon technologies.

American Jobs Plan: decarbonizing the electricity sector by 2035

With the goal of halving the country’s emissions by 2030, theAmerican Jobs Plan aims to electrify America. In particular, the plan proposes to invest 174 billion euros in the deployment of electric vehicles over the next few years. This deployment will be supported by the construction of almost 500,000 electric charging stations by 2030. Joe Biden also promises the complete electrification of the federal vehicle fleet, as well as 20% of school buses.

According to the plan’s promoters, this electrification of the vehicle fleet will be totally powered by low-carbon electricity by 2035. This will involve an explosion in electricity from solar andwind power, including 30 GW of offshore wind power by 2030. To achieve this goal, the Biden administration plans to impose a Clean Energy Standard on all grid operators. It should be noted that nuclear power in the United States continues to play an important role, being the country’s main source of low-carbon energy and a major stakeholder in the infrastructure component of the American Jobs Plan.

Blackout in Texas
Austin, Texas, faces snowstorm

Modernizing the power grid

One of the prerequisites for the electrification of society is to modernize the power grid. The events and blackout in Texas have shown just how important these networks are in an increasingly electrified economy. In particular, the integration of renewable energies will require greater flexibility to manage the intermittent nature of wind and solar power generation. Managing production peaks will require investment in electricity storage and smart grids.

Joe Biden’s plan aims to spend around $100 billion on modernizing power grids. Tax credits will be offered to accelerate the development of stationary storage technologies. In addition, almost 20 GW of high-voltage lines are due to be installed over the next few years. The aim is to enable solar and wind generators, which are often geographically remote, to reach large electricity consumption areas.

Where do coal, gas and oil fit in?

If theAmerican Jobs Plan aims to electrify America, that electricity will no longer come from coal. Coal has already seen a steady decline in production since 2014 due to competition from gas. This has helped reduce the growth in CO2 emissions in recent years. A short-lived reduction, since coal is rising from the ashes in China. But for Biden, this trend of declining American coal is set to continue with the closure of all coal-fired power plants by 2035.

In order not to penalize coal-dependent communities, the American president is proposing a Just Transition program. 40 billion will be used to finance retraining plans for workers in the sector. This point is essential, as the main opposition to a Green New Deal comes from its energy transition losers. This financial commitment could even increase in order to win the votes of Democratic senators from coal-mining states like West Virginia.

American Jobs plan
Plots of oil fields in Texas.

Oil and gas on a crest line

In addition to coal, the oil and gas sector is likely to be penalized by Joe Biden’s energy plan. As a result, oil’s market share is set to shrink in the face of the expected increase in the number of electric vehicles. As for gas, the total decarbonization of the electricity sector by 2035 risks eliminating it from the electricity mix.

However, the gas sector is counting on carbon capture and storage (CCS) technologies to keep it in the game. In particular, the plan calls for 35 billion euros to be invested in low-carbon innovations, including 15 billion for demonstration projects. Among these projects, 2 are directly linked to CCUS technologies, which will also benefit from the extension of the 45Q tax credit. Against this backdrop, ExxonMobil has just announced a $100 billion plan to develop CCUS.

Between RE and batteries, a possible dependence on China

Beyond opposition from Republicans or the left wing of the Democratic Party, China will be Biden’s main challenge. TheAmerican Jobs Plan aims to create jobs on a massive scale, a prerequisite for support for the energy transition. However, China’s domination of low-carbon technologies is likely to cast doubt on the White House’s ambitions. In thewind power sector, six of the ten largest companies are Chinese.

In the solar sector, the country has acquired a lead in the production of photovoltaic cells and panels. China’s dominance explains why solar energy costs are falling, thanks to the spread of economies of scale. For Biden, the challenge will be to ensure that the components are made in the USA, while remaining competitive. This point will be all the more important as pressure mounts to ban the import of solar panels produced in Xinjiang.

China controls 73% of the cells and 80% of the refining of metals used in batteries

But the thorniest issue for the Biden administration will be to move away from dependence on China for batteries. Today, the latter controls almost 73% of the cells and 80% of the refining of the metals used. China opens a mega-battery factory every week, compared with 1 every four months in the USA. In other words, it’s in their interest to increase domestic production, or risk becoming entirely dependent on China.

This is the argument used by several Republican senators against Biden’s plan. In particular, they criticize the Democratic administration for favoring Chinese battery imports over American oil. In order to silence these critics, it is in the White House’s interest to invest across the entire value chain. This will involve revitalizing the American mining sector and accelerating the construction of mega-mills.

America wants to innovate

In this area, recent announcements from Tesla in Nevada and LG and General Motors in Ohio seem most welcome. In addition, Biden has just announced an intellectual property exemption for South Korean manufacturer SK Innovation to produce in Georgia. This decision was largely motivated by the United States’ desire to no longer depend on China.

Consequently, theAmerican Jobs Plan aims to radically transform the American energy landscape towards decarbonization by 2050. Nearly 55% of the plan is devoted to low-carbon investments, compared with 30% in the European plan. This focus on renewable energies simply reflects America’s determination to regain leadership on climate issues. However, this plan runs the risk of favoring China, which is currently dominant in low-carbon technologies.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The French operator RTE is investing nearly one billion euros to acquire 5,000 km of underground cables from five European cable suppliers to modernize and strengthen its high-voltage electricity network.
The German government, in agreement with Paris, has expressed openness to a revision of European sanctions targeting automakers in 2025, aiming to support an industry struggling with Chinese competition and high energy costs.
The German government, in agreement with Paris, has expressed openness to a revision of European sanctions targeting automakers in 2025, aiming to support an industry struggling with Chinese competition and high energy costs.
The Indian group Adani has halved the electricity supplied to Bangladesh due to $850 million in unpaid bills. This reduction in energy flow places the country in a position where it must quickly address a shortfall.
The Indian group Adani has halved the electricity supplied to Bangladesh due to $850 million in unpaid bills. This reduction in energy flow places the country in a position where it must quickly address a shortfall.
As COP29 approaches, France presents an ambitious roadmap to strengthen renewable energy and reduce greenhouse gas emissions by 2030.
As COP29 approaches, France presents an ambitious roadmap to strengthen renewable energy and reduce greenhouse gas emissions by 2030.
[the_ad id="121209"]
[the_ad id="121211"]
Canada commits to a 35% reduction in emissions from its energy sector by 2030, imposing constraints on a key economic industry. This project brings both hopes and concerns among provinces and companies.
As COP29 approaches in Azerbaijan, tensions emerge as climate ambitions clash with economic realities, and vulnerable nations express growing impatience.
As COP29 approaches in Azerbaijan, tensions emerge as climate ambitions clash with economic realities, and vulnerable nations express growing impatience.
Facing a severe fuel shortage due to a lack of foreign currency, Malawi has implemented rationing measures, raising fears over food security and the stability of the agricultural and economic sectors.
Facing a severe fuel shortage due to a lack of foreign currency, Malawi has implemented rationing measures, raising fears over food security and the stability of the agricultural and economic sectors.
With the tightening of European CO2 emissions standards, car manufacturers must reduce their emissions or face massive penalties. A significant challenge that could reshape the industrial landscape in Europe.
With the tightening of European CO2 emissions standards, car manufacturers must reduce their emissions or face massive penalties. A significant challenge that could reshape the industrial landscape in Europe.
[the_ad id="121213"]
[the_ad id="121214"]
Patrick Pouyanné, CEO of TotalEnergies, calls on Donald Trump to uphold U.S. climate commitments if he wins in 2024, fearing the impact of excessive deregulation on the oil industry and public opinion.
Trump proposes import taxes: mixed reactions from the energy sector
Trump proposes import taxes: mixed reactions from the energy sector
Facing rising energy prices, numerous French households are at risk of power cuts and reduced electricity supply. An alarming situation that raises questions about the essential nature of energy.
Facing rising energy prices, numerous French households are at risk of power cuts and reduced electricity supply. An alarming situation that raises questions about the essential nature of energy.
Turkey launches a plan to modernize its electrical grid with the support of Climate Investment Funds and international financial players, aiming to quadruple solar capacity and double wind energy by 2035.
Turkey launches a plan to modernize its electrical grid with the support of Climate Investment Funds and international financial players, aiming to quadruple solar capacity and double wind energy by 2035.
Paris Calls for a Delay in CO2 Sanctions Against European Automakers
The clean energy technology market could reach a value of $2 trillion by 2035, driven by solar, wind, electric vehicles, and other innovations, according to the latest IEA report.
The clean energy technology market could reach a value of $2 trillion by 2035, driven by solar, wind, electric vehicles, and other innovations, according to the latest IEA report.
For two weeks, a power outage caused by jihadist sabotage has affected 19 states in northern Nigeria, paralyzing daily life for millions and weighing heavily on the local economy.
For two weeks, a power outage caused by jihadist sabotage has affected 19 states in northern Nigeria, paralyzing daily life for millions and weighing heavily on the local economy.
Belgium’s ambitious artificial island in the North Sea, designed to centralize renewable energy distribution, sees its costs triple, raising concerns about its financial and environmental future.
Belgium’s ambitious artificial island in the North Sea, designed to centralize renewable energy distribution, sees its costs triple, raising concerns about its financial and environmental future.
[the_ad id="121219"]
The "Forecasting Green Jobs in Africa" report by FSD Africa and Shortlist reveals the potential to create millions of green jobs on the continent by 2030, focusing on key sectors like energy, agriculture, and sustainable mobility.
As COP29 approaches, a UN report highlights that current climate commitments will not suffice to limit global warming to 1.5°C, endangering economies and human lives.
As COP29 approaches, a UN report highlights that current climate commitments will not suffice to limit global warming to 1.5°C, endangering economies and human lives.
By leveraging its nickel resources, Indonesia inaugurates its first battery plant with the ambition of becoming a major player in the electric vehicle supply chain.
By leveraging its nickel resources, Indonesia inaugurates its first battery plant with the ambition of becoming a major player in the electric vehicle supply chain.
A new UN report highlights the urgency of accelerating global emission reductions, with strengthened targets expected by February 2025 to avoid a catastrophic 3°C temperature rise.
A new UN report highlights the urgency of accelerating global emission reductions, with strengthened targets expected by February 2025 to avoid a catastrophic 3°C temperature rise.
After years of conflict surrounding the Western Guyanese power plant, an unprecedented agreement has been signed with the Amerindian village of Prospérité, including an endowment fund to support local development.
Ahead of COP29, the Climate Change Committee recommends that the UK commit to an ambitious 81% reduction in greenhouse gas emissions by 2035, reinforcing its role in the global fight against climate change.
Ahead of COP29, the Climate Change Committee recommends that the UK commit to an ambitious 81% reduction in greenhouse gas emissions by 2035, reinforcing its role in the global fight against climate change.
Ontario announces an ambitious plan to meet a 75% increase in electricity demand by 2050, focusing on nuclear, hydropower, and natural gas.
Ontario announces an ambitious plan to meet a 75% increase in electricity demand by 2050, focusing on nuclear, hydropower, and natural gas.
Up to £10 billion of pre-tax value could be unlocked in the North Sea if the UK adopts an incentive-based tax policy, restoring trust between the government and the oil and gas industry.
Up to £10 billion of pre-tax value could be unlocked in the North Sea if the UK adopts an incentive-based tax policy, restoring trust between the government and the oil and gas industry.

Advertising