Solar energy soars to a new high in the US

Solar energy booms in the US: US solar energy installations soared to a record high in the first quarter of 2024, with a 71% increase, comprising 75% of new power capacity added to the grid, according to a newreport by Wood Mackenzie and the Solar Energy Industries Association published on Thursday. The surge to 11.8 GW of new solar capacity is attributed to increased panel availability, supportive federal and state policies, and a rise in module imports following a moratorium on tariffs on panels linked to forced labor. The US is also set to match 2023's record of nearly 40 GW despite a decline in home solar additions. The country now has a total solar capacity of 200 GW with projections indicating capacity will increase to 438 GW by 2029.

ALSO- The industry is likely to boom further: US solar developers are poised for a surge in installations as a two-year tariff holiday on Southeast Asian solar panels ends, Reuters reported on Thursday. The nearing deadline is prompting the use of stockpiled equipment before new duties apply. The tariff suspension allowed for the accumulation of 35 GW of panels, nearly matching the total US capacity for 2024. However, the impending tariffs and a 50% price drop have sparked concerns among domestic manufacturers. Companies have 180 days to use the accumulated capacity starting 6 June or they’ll have to pay a fine.

IN OTHER US NEWS- US eases automaker fuel efficiency standards amid industry pressure: The Biden administration has relaxed fuel efficiency requirements for automakers, mandating an average of 50.4 miles per gallon across their fleet by the 2031 model year, according to a statement released on Friday by the US National Highway Traffic Safety Administration. The move — which is in response to industry pushback and concerns over slowing demand for EVs — is a 1.4 mile-per-gallon increase from 2026 targets, but is less stringent than the 58 miles initially proposed.

EU countries pushing to ease greenwashing rules amidst political pressure: A majority of EU members want to ease greenwashing prevention regulations that are part of the bloc’s Green Deal, The Financial Times reported on Thursday, citing a document outlining the changes in the deal. Specifically, member states want to alter rules meant to ensure companies cannot make false claims about their eco-credentials, with the changes set to be voted on on 17 June.

Supporters are now backtracking: The deal, which aims for net zero emissions by 2050, has been subject to much political heat by the right wing, who blame it for harming the industrial sector and overloading companies that are already subjected to strict environmental reporting. Even European Commission President Ursula von der Leyen has backtracked on some of the plans to gain support from conservatives, despite being the one who originally proposed the climate law in 2020.

Member states versus Parliament: All member states — except for four, including Germany and Austria — support easing the rules and have proposed a “simplified procedure” that would allow companies to independently assess the scientific credibility of their sustainability claims. The countries also support weaker carbon neutral rules for companies that purchase carbon credits to offset emissions. Parliament, however, argues that highly polluting companies can claim to be carbon neutral and then only mention in fine print that 99% of emissions were offset, but bloc members argue that carbon offsets are a useful tool to begin decarbonization.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• World's largest offshore wind turbine installed in southern China: An 18 MW semi-direct drive offshore wind turbine, the world's largest, was successfully installed in Guangdong province, southern China on Wednesday. Developed by Dongfang Electric Corporation, the turbine has a rotor diameter of 260 meters and a swept area of over 53k sqm. It can generate up to 72 mn kWh annually, meeting the electricity needs of about 36k households, saving over 22k tons of standard coal, and reducing carbon emissions by more than 59k tons per year. (Xinhua)
• India needs to invest USD 385 bn in renewables to reach target: India needs to invest up to USD 385 bn — USD 190-250 bn for capacity over the next six to seven years and USD 150-170 bn for transmission and distribution — in order to achieve its target of 500 GW of renewable energy by 2030, Moody’s Ratings estimated. An annual 44 GW of added capacity per year would help achieve this target. (Reuters)
• Germany plans 60 GW offshore wind energy expansion: Germany's Maritime and Hydrographic Agency has published a draft for plans to expand offshore wind energy development by 60 GW by 2037. Some 36 GW of the expansion will be built on “acceleration areas,” which benefit from more relaxed permit rules. (Reuters)