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Energy transition is a challenge that is being successfully addressed, at least in the West (ambition is another matter). However, with one exception, most of the projects are led by the European Union. This is a renewable energy train. America We exceeded that even though we had to invest up to $400 billion at once.
The US and European Union are competing with this renewable energy trend
Renewable energy competition has intensified in recent years as both the United States and the European Union seek to transition away from fossil fuels.Clean energy solutions like wind and solar as climate change accelerates becoming important to reduce greenhouse gas emissions.
However, the pace and manner of this clean energy transition are beginning to diverge between the United States and the European Union. Both countries remain committed to promoting renewable energy, but the United States is leading the way in growth, thanks in large part to more generous government subsidies.
This has enabled the United States to attract significant private investment into domestic energy projects and supply chains. The EU is lagging behind, with incentives fragmented across member states. However, with the US Inflation Control Act providing her with a new $400 billion subsidy, The EU is now scrambling to keep pace.
These renewable energy subsidies alone give the US an edge over the European Union.
Renewable energy has grown rapidly in the United States over the past decade, largely due to generous subsidies and tax credits. Key federal policies supporting renewable energy include the Production Tax Credit (PTC) for wind energy and the Investment Tax Credit (ITC) for solar energy.
These tax credits lowered the cost of renewable energy and encouraged large-scale private sector investment in wind and solar projects. According to the U.S. Energy Information Administration, renewable energy generation has doubled in the past decade. Much of that growth comes from wind and solar.
PTC and ITC helped the United States install more than 100 gigawatts of wind and solar power from 2010 to 2020. Subsidies have lowered the cost of renewable energy, making wind and solar power more cost-competitive with fossil fuels in many parts of the country. .
State-level policies are also accelerating the transition to renewable energy in leading states such as California, Texas, and Iowa. Overall, renewable energy currently accounts for more than 20% of US electricity generation. up from about 10% just 10 years ago.. Renewable energy expansion in the United States is expected to continue to grow at a faster pace.
A victory that cost us $400 billion: more efficient, more decentralized and more agile than Europe.
The United States has been more generous with subsidies for renewable energy than the European Union. Inflation Control Law to be passed in 2022 Includes more than $400 billion in subsidies and tax credits For renewable energy and climate-related industries.
In contrast, EU subsidies are more modest. European renewable electricity auctions offer guaranteed prices but lower levels of subsidies. Analysis shows that by 2030, subsidies for wind and solar power in the US will be two to four times more generous than in the EU.
In any case, most of Europe’s financial resources dedicated to public aid for energy efficiency are still untapped or fragmented.
The scale of U.S. subsidies has drawn the attention of European energy executives and policymakers.The CEO of Italian power company Enel recently He said the U.S. subsidy was “unparalleled.” It allows you to invest in renewable energy that is 30-40% cheaper than in the EU.
As you can see, the creation and implementation of subsidies is much more efficient in our country than in the European Union.is clear us energy With solid commitment from our institutions and businesses, we have a promising future ahead of us (if that’s not enough, remember the words of the United Nations).
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