North America’s sustainable energy future confirmed by Hitachi ABB report
North America: A new report from Hitachi ABB Power Grids confirms that the future of the North American energy industry is undeniably green.
According to the report, titled North America Power Reference Case: Spring 2020, renewable energy generation is estimated to see double-digit growth in the next 25 years. The report draws upon dana compiled by the business entity’s intelligence service, Velocity Suite, which has been informed by its proprietary capacity expansion model, and its well-established PROMOD production cost model.
Driven by declining capital costs and overlapping state, utility, and corporate clean-energy priorities and regulations, renewable energy and natural gas are expected to dominate North American power generation for the next two decades. The report forecasts that almost 50 % of coal power generation will cease by 2044, solar is forecast to generate twice what coal produces now — four times the growth expected from where we stand today. Furthermore, wind generation is expected to reach 191 GW – almost double what coal will deliver in 2044.
“By 2044, North America’s dependency on fossil fuel-based energy sources will be a fraction of what it is today,” said Greg Toothaker, Vice President, Energy Portfolio Management at Hitachi ABB Power Grids. “Combined, the global pandemic and the oil price shock have led to a forecasted 20 % decrease in overall energy spending for 2020, whilst major oil companies have left capital investments in renewables untouched, thus reinforcing the future of sustainable energy in North America.”
“ARC views Hitachi ABB Power Grids’ forecasts as timely and relevant, and holds this research in high regard. We also feel that this insight would be valuable to any participant in the North American energy market seeking to deliver more renewables to the energy mix,” said Ed O’Brien, ARC Advisory Group, Inc.
Key highlights from te report are: natural gas for renewable investment, load growth from COVID-19 expected to rebound in 2021, and renewable construction costs dropping year-on-year.