2022 Sustainable Energy in America Factbook

This briefing was hosted in coordination with the House and Senate Renewable Energy & Energy Efficiency Caucuses.

This briefing was sponsored by: Business Council for Sustainable Energy and Environmental and Energy Study Institute.

The tenth edition of the Sustainable Energy in America Factbook, published by BloombergNEF (BNEF) and the Business Council for Sustainable Energy (BCSE), is available to download at www.bcse.org/factbook. The Factbook provides updates on industry information and trends for the U.S. energy sector, with an in-depth look at the energy efficiency, renewable energy, and natural gas sectors, as well as emerging areas such as digitalization, micro-grids, offshore wind, hydrogen, and renewable natural gas.  

This edition of the Factbook provides new data and analysis about the performance of clean energy sectors by tracking year-on-year as well as long-term trends within the U.S. energy economy. Designed for a broad audience—from the energy professional to the public policymaker to the curious student—the Factbook offers an insightful and in-depth look at economics, market and investment dynamics, and technology trends.

Highlights

 

KEY TAKEAWAYS

The Sustainable Energy in America Factbook provides an in-depth look at the trends in the energy sector, including in energy efficiency, renewable energy, renewable natural gas, hydrogen, natural gas, and carbon capture, storage, and utilization. U.S. energy productivity (i.e., a measure of the economic benefit we receive from each unit of energy we use) increased in 2021. This shows that economic growth and energy consumption are decoupled, as in many other countries. Energy productivity increases are driven primarily by energy efficiency. Renewable energy deployment had a record-breaking year with 37.3 gigawatts (GW) built in 2021. This deployment consisted primarily of wind and solar energy generation. There was record growth of 4 GW of battery storage in 2021. At more than 6 GW, total battery storage capacity is almost three times more than in 2020. Decarbonization in the power sector can unlock decarbonization in other sectors, so overall progress requires urgency in this sector. The comprehensive clean energy tax platform in the House-passed Build Back Better Act (H.R.5376) is the best opportunity for this progress. New building construction between now and 2050 will only account for about 20 percent of all buildings globally in 2050. Therefore, retrofitting existing buildings so they have net-zero emissions is crucial to reducing the greenhouse gas emissions of the building sector. One policy solution is Building Performance Standards, which set mandatory energy or carbon emission benchmarks for existing buildings.

 

Emily Duncan, Vice President, Government Relations, National Grid; Chairman, Board of Directors, Business Council for Sustainable Energy

• It is the 10th year of the Sustainable Energy in America Factbook.
• The events in Ukraine and their impacts on the global energy supply highlight the importance of the Factbook.

 

Lisa Jacobson, President, Business Council for Sustainable Energy

• The Business Council for Sustainable Energy (BCSE) is a broad-based clean energy trade association.
• BCSE represents commercially-available clean energy and energy efficiency technologies, products, and services. BCSE has members that span the entire supply chain of clean energy, which represents over three million jobs.
• BCSE primarily focuses on energy efficiency, natural gas, and renewable energy and is also involved in renewable natural gas, hydrogen, and carbon capture, storage, and utilization. These topics have increased coverage in the Factbook, which is a collaboration between BCSE and BloombergNEF.
• In 2021, a record total investment of over $700 billion was made in the global energy transition.
• U.S. investment in the energy transition grew to about $100 billion in 2021, primarily in renewable energy and electric transportation. The United States has been second to China in clean energy investments for about a decade.
• Investment in clean hydrogen doubled from $100 million in 2020 to $200 million in 2021.
• Renewable energy deployment had a record-breaking year with 37.3 gigawatts (GW) built in 2021. This deployment consisted primarily of wind and solar energy generation.
• When there are supportive federal policies, there is steady growth in solar.
• Corporations procured about 17 GW of new clean energy (primarily wind and solar) in 2021 for a cumulative procurement of about 65 GW. While the usual set of corporations procured significant amounts of clean energy again in 2021, new companies beyond the technology sector, like Target and McDonalds, did as well.
• There was record growth of 4 GW of battery storage in 2021. At more than 6 GW, total battery storage capacity is almost three times more than in 2020.
• Over 80 percent of energy storage is still pumped hydropower, which has a capacity of more than 20 GW.
• There was record U.S. natural gas demand at about 92 billion cubic feet per day. Natural gas is important for security and decarbonization. There is significant interest in renewable natural gas and green hydrogen.
• Texas utility ERCOT’s power prices reached a new record high of about $160 per MWh (compared to less than half that for every other provider) in 2021. This was due to the severe winter storm Uri in February 2021 and the market structure in Texas.
• In 2021, the United States experienced 20 weather and climate disasters that cost more than $1 billion, which followed a record-breaking 22 in 2020. The United States spent over $145 billion because of these disasters. These climate impacts could continue to drive wholesale power prices up like they did in Texas.
• Electric vehicles sales doubled from about 326,000 in 2020 to about 657,000 vehicles in 2021. Unlike previous years in which Tesla made up most sales, sales in 2021 were from diverse providers, including Toyota and Volkswagen.
• Corresponding to the pandemic recovery, U.S. GDP and primary energy consumption increased in 2021 after the 2020 decreases.
• U.S. energy productivity (i.e., a measure of the economic benefit we receive from each unit of energy we use) increased in 2021. This shows that economic growth and energy consumption are decoupled, as in many other countries. Energy productivity increases are driven primarily by energy efficiency. According to the American Council for an Energy-Efficient Economy, 60 percent of energy productivity gains can be attributed to energy efficiency.
• Total U.S. greenhouse gas emissions and power sector emissions increased in 2021, but total emissions are down 15 percent and power sector emissions are down 35 percent from 2005 levels.
• Transportation emissions surpassed that of the power sector in 2016. The power sector emits about 1,500 million metric tons of carbon dioxide equivalents (MMtCO2e) compared to the transport sector’s 1,800 MMtCO2e or so.
• Emissions from the building, agriculture, and industrial sectors have not changed significantly over the past decade.
• The bipartisan Infrastructure Investment and Jobs Act (P.L.117-58) made landmark investments of $80 billion across many industries.
• The clean energy and energy efficiency tax incentives in the House-passed Build Back Better Act (H.R.5376) would be impactful.

 

Bill Parsons, Vice President for Federal and State Affairs, American Clean Power Association

• The share of U.S. electricity generated by coal has decreased from 42 percent in 2011 to 22 percent in 2021. The share of nuclear generation has remained steady, while there has been notable growth in natural gas and renewable energy.
• Of currently-deployed renewable energy (and excluding hydropower), about 67 percent is onshore wind, about 30 percent is solar, and about 3 percent is battery storage. In contrast, the makeup of renewable energy projects in the pipeline is about 55 percent solar, 20 percent onshore wind, 15 percent offshore wind, and about 10 percent battery storage.
• Battery storage capacity experienced a 196 percent increase in 2021.
• Green hydrogen is also poised for exciting growth.
• Some challenges in the market include supply chain issues, trade policy, policy uncertainty, siting and permitting challenges, long interconnection queues, and insufficient transmission infrastructure.
• The events in Ukraine highlight how renewable energy can help tackle domestic and global issues. Renewable energy can be a solution to climate change, inflation, supply chain issues, and energy security.

 

Vincent Barnes, Senior Vice President of Policy and Research, Alliance to Save Energy

• Energy efficiency reduces carbon emissions while increasing energy reliability, affordability, resilience, and security.
• Energy efficiency technologies range from passive efficiency products, such as insulation and ENERGY STAR® windows, to active efficiency solutions, such as grid-connected appliances and grid-integrated buildings.
• Energy efficiency alone can reduce U.S. carbon emissions by 50 percent by 2050 and account for 40 percent of the emissions reduction required by the U.S. commitment under the Paris Agreement.
• Without the energy efficiency investments that have occurred since 1980, U.S. greenhouse gas emissions would be about 60 percent higher.
• Due in part to electrification efforts and electric vehicles, there could be a 40 percent increase in energy consumption by 2050, underscoring the importance of efficiency in the effort to meet demand with clean sources.
• Although grid costs will increase to meet this load increase, according to the National Renewable Energy Laboratory, energy efficiency can provide up to $800 billion in net energy systems savings.
• Tax incentives will be important to encourage businesses and consumers to invest in energy efficiency. These tax incentives include the 25C tax credit for homeowners, the 45L tax credit for single and multi-family home builders, and the 179D deduction for commercial buildings.
• Developing strong building performance standards and energy codes, funding research and development of energy efficiency technologies, and making substantive investments in initiatives such as the Weatherization Assistance Program will also be important to achieve energy savings.

 

Erin Duncan, Vice President of Congressional Affairs, Solar Energy Industries Association

• There was tremendous growth in the solar industry last year. Supply chain challenges and trade sanctions could threaten this growth rate.
• Solar energy made up 46 percent of all new generation capacity in 2021.
• The solar energy sector is expected to install 300 GW of new capacity over the next 10 years.
• Policies to make solar more accessible are crucial. The House-passed Build Back Better Act would make 25D tax credits refundable. This bill would help more families install residential solar and incentivize investments in communities that have been previously overlooked and would benefit the most from access to clean energy. The tax credits in this bill also provide incentives to developers to work in these communities.
• In 2021, about 231,000 people worked in the solar industry. Over the next five years, the industry must expand by hundreds of thousands of jobs, particularly in the domestic manufacturing sector, to meet U.S. clean energy goals.
• Training, recruitment, and retention of these workers is critical to facilitate the transition to clean energy. It is important to engage communities that have not yet been exposed to clean energy.
• Programs like Solar Ready Vets and workforce development programs within the Build Back Better Act are crucial for creating careers in clean energy.

 

Mark Lessans, Director of Regulatory and Environmental Affairs, Johnson Controls

• Buildings are key to addressing climate change. Buildings are responsible for about 40 percent of global greenhouse gas emissions. It is not possible to address climate change without net-zero emission buildings.
• The stringency of building energy codes varies among states. Some states with more stringent energy codes include California and New York. Some states have no building energy codes at all.
• Building energy codes have made tremendous strides for new construction. The model code that the Department of Energy uses is the International Energy Conservation Code and the ASHRAE Standard 90.1. These codes have helped lead to about a 50 percent reduction in the overall energy intensity of the building sector over the past 30 to 40 years. Most states and cities are adopting some version of these codes.
• New construction between now and 2050 will only account for about 20 percent of all buildings globally in 2050. Therefore, retrofitting existing buildings so they have net-zero emissions is crucial to reducing the greenhouse gas emissions of the building sector.
• One policy solution is Building Performance Standards, which set mandatory energy or carbon emission benchmarks for existing buildings.
• The White House Council on Environmental Quality announced a Building Performance Standards Coalition of 33 cities and states that either have or will adopt these standards. Roughly 19 to 20 million square feet of commercial floor space will be impacted by these building performance standards.
• Building performance improvements will help the United States reemerge from the pandemic. Improved indoor air quality delivered by better building systems can prevent the spread of airborne viruses, an important aspect of a sustainable building.
• As distributed resources are expanded to help decarbonize and manage the overall energy system, buildings can help balance the grid.

 

Q&A

 

Q: How can clean energy positively impact all communities? What policies will help make the industry and its beneficiaries more diverse?

Erin Duncan:

• A diverse workforce and customer base bring strength to our industry. There is a workforce shortage in the U.S. solar industry. People tend to be attracted to jobs that they understand and know about. It is important to expose people to the industry and expand recruiting methods among companies. The Solar Energy Industries Association has a certification program for the industry in which companies do online training to help build their skills in diversity, equity, inclusion, and justice issues and learn about how recruiting methods can introduce new communities into the solar industry.
• The Blue Collar to Green Collar Jobs Development Act (H.R.156) would connect people who have lost their jobs in fossil fuel industries or people in underserved communities to jobs in renewable energy and energy efficiency.
• Some provisions in the House-passed Build Back Better Act support apprenticeships through energy investment tax credits. These tax credits would be available to companies for which a certain percentage of total labor hours are performed by apprentices, ensuring that clean energy industries are constantly building the necessary workforce for the future.
• A provision in the bipartisan Infrastructure Investment and Jobs Act about solar energy generation on school buildings gives public schools an opportunity to teach students about renewable energy and how it works.

Parsons:

• Some communities bear a disproportionate burden from historic energy generation. The transition itself will relieve that burden of pollution and energy cost.
• History shows that if you are not intentional about diversity, equity, inclusion, and justice, some communities will be left out.

Barnes:

• Energy efficiency brings the cost of energy down for the end user. Low-income families and rural communities have some of the highest energy burdens. Energy efficiency has the ability to alleviate that burden.
• Equity means universal access. Tax and rebate policy in general can increase access.
• Energy efficiency is the largest employer in the clean energy sector. As energy policy is transformed, jobs in energy efficiency will increase.

 

Q: How does your industry impact inflation?

Parsons:

• ERCOT, the primary power provider in Texas, experienced blackouts and price spikes prompted by winter storm Uri in 2021. The storm also covered areas served by other power providers. The Southwest Power Pool (SPP) had significantly less disruption in electricity services than ERCOT, because SPP could pull excess power from across the country to keep the lights on in over 5 million homes at an affordable price.
• ERCOT is like an island. If they had greater interconnectivity to adjoining states and power markets, customers would be more reliably served at a more affordable price.

Lessans:

• Flexible-load buildings can help manage energy costs using digital solutions, distributed energy resources, and energy source diversification.

Erin Duncan:

• Supply chain challenges and tariffs contribute to additional costs to install clean energy.
• Through net energy metering, one farmer received tax credits from solar panels installed on his property and was able to dry his corn for free, a process that can normally cost hundreds of thousands of dollars.

Barnes:

• Energy efficiency can make energy affordable for consumers and control the costs of energy infrastructure. By reducing energy demand, the need for additional infrastructure can be minimized.

Parsons:

• The clean energy tax credits in the House-passed Build Back Better Act could make long-distance transmission and energy storage more affordable. These technologies have bipartisan support and are needed for grid reliability and decarbonization.

Emily Duncan:

• The Build Back Better Act includes a hydrogen production tax credit that is critical to driving down the cost of hydrogen.

 

Q: What is the most important thing policymakers can be focused on right now?

Parsons:

• Eliminating policy uncertainty, enacting supportive trade policy, strengthening the supply chain, and addressing siting and permitting challenges are critical to advance the clean energy transition.
• Decarbonization in the power sector can unlock decarbonization in other sectors, so overall progress requires urgency in this sector. The comprehensive clean energy tax platform in the House-passed Build Back Better Act is the best opportunity for this progress.
• The provisions in the Build Back Better Act are more likely than tariffs to create domestic manufacturing facilities, jobs, and investment.

Barnes:

• Investments in energy efficiency must be equal to or greater than investments in oil, natural gas, and clean energy technologies.
• Access to energy efficiency technologies must be universal. This could be achieved through rebate programs or opportunities provided through utilities.
• The clean energy tax credits for energy efficiency, particularly 25C, 45B, and 179D are important to energy efficiency.
• Tax credits should be based on energy efficiency and not fuel source.

Erin Duncan:

• Policymakers must have courage to take this transformative step. There is broad agreement among the American people about what needs to happen. There are many benefits to clean energy like reducing carbon emissions, creating jobs in diverse communities, ameliorating the worst effects of traditional fuels, strengthening domestic manufacturing, and even freeing the United States from some of the geopolitical conflicts that have arisen because of dependence upon foreign sources of energy.

Lessans:

• The pace of building retrofits must be faster. The deep energy retrofits that are required can be disruptive, and the upfront costs can be expensive. It is challenging for many building owners to see far enough into the future and understand how a deep energy retrofit can create a return on their investment. Policy can help consumers and businesses pursue these retrofits.
• Policymakers can leverage public financing with private capital. This can multiply the overall impact of public financing.
• Policymakers must create energy efficiency and decarbonization service models to promote long-term investments.

Emily Duncan:

• Cybersecurity is important for utilities to protect energy security.
• Electric vehicles and the distribution infrastructure they require will be critical in reducing emissions. Transportation has been the top sector for greenhouse gas emissions for many years now. Electric vehicle tax credits are key to driving down costs.

Jacobson:

• BCSE’s number one priority at the federal level is enacting the climate and energy tax provisions in the House-passed Build Back Better Act that are now being considered in the Senate.

Bresette:

• There are many great programs across the federal government that deliver mitigation, adaptation, and resilience benefits every day. Policymakers should stay focused on those as well as invest in new programs.

 

Compiled by S. Grace Parker and edited for clarity and length. This is not a transcript.