Category: Interviews

Electrification of transport has gained significant momentum in the United States, especially in the state of California. The state, reputed for its commitment to clean and renewable energy has taken several initiatives over the past decade to move towards carbon neutrality. Clifford Rechtschaffen, Commissioner, California Public Utilities Commission talks about the key initiatives undertaken by California in this space and the way forward.

The Baltic sea is surrounded by countries with ambitious carbon neutrality targets and climate action goals. Estonia is not far behind, with a target of 70 per cent carbon dioxide reduction by the year 2030. The country also targets to achieve climate neutrality by 2050. To achieve climate neutrality and renewable energy targets, we have to focus on offshore development in addition to onshore projects.

Offshore wind is slowly gaining traction in the US especially on the east coast where state policies and favourable conditions are driving the industry. The drastic drop in offshore wind technology costs combined with its potential to address some pressing concerns for the country’s power sector, is expected to create interest in other parts of the country as well.

Geographically, the US renewable energy sector is an important growth market for us. This market allows us to deploy capital at scale and develop large capacities with shorter lead times. It has proved to be a very compelling market for us.

A game changer for solar energy, I think, is the incorporation of storage into solar PV projects. We are actively building our technological capabilities in the solar plus energy storage space, to gear up for these new growth opportunities.

Offshore energy is slated to play an instrumental role in building a power system largely based on renewables to reach the 2030 and 2050 energy and climate objectives. This net-zero objective is ambitious and will require an array of policy changes in sectors beyond energy as well. Offshore wind has the potential to contribute to a sustainable and inclusive post-Covid-19 recovery.

Current projections suggest that by 2030-35, generation costs for utility solar will reduce even further to 1 to 2 USD cents per kWh in sunny locations. This means that building new solar power plants will not only be cheaper than operating already-built coal plants, but cheaper than fossil fuel plants in general. The uptake of solar power will certainly accelerate the phasing out of coal and other fossil fuels.