Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

The West to Build Energy Future without China, Russia

December 6, 2022 By Jeremy Jones, CFA

By Dancing_Man @ Shutterstock.com

The developed world is working to carve out an energy future that isn’t reliant on Russian oil and gas or on Chinese solar panels. Camilla Hodgson reports in the Financial Times:

Solar power is undergoing a boom as the energy crisis drives a shift to renewable energy following the war in Ukraine and is expected to surpass coal power by 2027, the International Energy Agency has forecast.

Renewable energy overall will become the largest source of global electricity generation by early 2025, the IEA said, and the world will add twice as much renewable capacity from 2022 to 2027 as in the previous five years.

Not only were countries driving “the expansion of new renewables” to achieve climate goals, but energy security and the need to “diversify” renewables supply chains away from China had become increasingly important, IEA executive director Fatih Birol said in an interview.

“There is a strong competition between the largest economies of the world to have a pole position when it comes to the next chapter of the industry sector,” he said, whether in solar, wind power, batteries or electric vehicles.

The rush to replace the oil and gas that is no longer coming from Russia, and to build domestic renewables sectors, has led to a push for industry incentives and subsidies.

The US is forging ahead with its landmark climate package, the $369bn Inflation Reduction Act, which includes incentives for solar manufacturing through $10bn allocated for tax credits for clean energy overall and $27bn set aside in a “green bank” to support clean energy projects in communities.

Between 2022 and 2027, global renewable power capacity will increase by 2,400 gigawatts, an amount equal to China’s power capacity today, the IEA estimated in its latest annual report on renewable energy. This is 30 per cent higher than the IEA had forecast a year ago.

The US and India are expected to lead diversification of the solar manufacturing supply chain, the IEA said, reducing China’s dominance. Solar investment by the two countries is expected to reach almost $25bn between 2022 and 2027, a sevenfold increase from the past five years.

China, however, will remain a “dominant player”, the IEA said, with its market share estimated at around 75 per cent in 2027 compared with 90 per cent today.

The IEA warned in June that China’s hold on the solar panel supply chain could slow the global shift to cleaner energy. The country will account for almost half of newly added renewable power in the years to 2027, helped by policies included in China’s latest five-year plan, the agency said this week.

The solar boom is expected to pick up pace in the next two years. Iberdrola, a leading European renewable energy company, planned to “more than double our global solar capacity to 10.6 gigawatts by the end of 2025”, said Xabier Viteri Solaun, director of the sustainable energy business.

Solar projects can be developed and built more quickly than other renewable sources, he added, and the company is “seeing an increase in solar capacity being added to new and existing wind farms”.

Even faster growth can occur if European countries make it easier to obtain permits for new projects, improve incentives for rooftop solar installations and offer better terms in renewable energy auctions, the IEA noted.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • China’s Coal War with Australia
  • China Mining MORE Coal While the West Crusades for Climate Change
  • India and China Quietly Eschew Sanctions, Buy Russia’s Oil
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • The Cloud Slowdown Is Hurting Amazon the Most - February 8, 2023
  • Real Estate “Power Buyers” Suffering Glut of Inventory - February 7, 2023
  • AI SEARCH WAR BEGINS: Google and Microsoft Join AI Battle - February 6, 2023

Search Young Research

Most Popular

  • You Aren't Getting These Yields from Your Bank Account
  • What Your Survival Guy Invested in Today
  • Tom Brady Retires, Again. Should You?
  • Suddenly, Holding Cash Looks Good Again to Many
  • Do You Trust This Rally?
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • The Power of a Compound Interest Table
  • What Happens if the "Fed Put" Is Over for Good?
  • Early Advice from Her Dad on Tipping at Charlie Trotter’s
  • Warren Miller: If You Don’t Do It This Year, You’ll Be…

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Big Hearted, Idealistic, Daring…
  • Yes, Your Children Are Listening to You
  • BEN CARSON: How Is Biden’s Speech Creating Unity?
  • Biden’s State of the Union Address Receives Rough Reception
  • Can a Capital Injection Save Bed Bath & Beyond?
  • You Aren’t Getting These Yields from Your Bank Account
  • Democrats’ Widening Schism
  • Jimmy Buffett Playing Key West
  • Whatever You Knew, Dave Hammer Knew More
  • Dragon Tours Open for Business

RSS The Latest at Yoursurvivalguy.com

  • Yes, Your Children Are Listening to You
  • You Aren’t Getting These Yields from Your Bank Account
  • Bidenflation Has Eaten Up Americans’ Pandemic Savings
  • Dragon Tours Open for Business
  • What Your Survival Guy Invested in Today
  • You Invest, They Win: FTX Edition
  • Your Retirement Life: Adventure Awaits
  • Zumwalt-Class Guided Missile Destroyers to Get Hypersonic Weapons
  • Early Advice from Her Dad on Tipping at Charlie Trotter’s
  • Treasury Bonds Ready to Rock and Roll

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.