The transition will not be televised – Part 1

There is a societal transition simmering below the surface: the shift to cleaner energy and a more sustainable economy. And while the invasion of Ukraine propelled oil and gas markets back into the headlines, system pressure had been building for years. Now, more than ever, we see that long-term economic growth depends upon breaking the dependency on fossil fuels.

In this briefing, we set out our views on drivers for an accelerated energy transition in North America. We focus on solar and wind power, technologies that are poised to take on material roles as suppliers of primary energy to the US economy.

Summary

• The drive to reduce carbon emissions is likely to generate a sharp rise in total electricity demand. We see wind and solar power poised to become heavyweights in the new digital upstream of the US energy sector.

• It won’t be all smooth sailing. Uncertainty about the expansion of high voltage transmission capacity, potential renewal of trade conflicts with China, the prospects for permitting reform, and industry adjustment to higher borrowing rates are concerns that we are monitoring.

• For the US to meet its net-zero goals, the transition to clean energy needs to happen more quickly. But it is already moving faster than most people think.