2023 Energy Review - Policy changes and Technology advancements in the RE space

Renewable Energy made great strides in 2023, here's why we're so excited for 2024👇

‍Policy Changes
‍1) The REPowerEU proposal signed in 2022 looks to decrease European dependence on fossil fuels from 31% in 2021 to a whopping 69% in 2030. This is particularly noteworthy because since originally signed, the Commission has ambitiously increased its 2030 green energy target 2 times, from 32% initially to its latest number of 45% of all energy in Europe to be from renewable sources.

2) US Inflation Reduction Act signed in 2022 is beginning to take effect. The act, signed by Biden, was the largest climate action spending in US history at an estimated $370 billion. And it's producing great results, reporting $120 million in private investment to manufacturing systems, up from $45 million in their initial projections. And it doesn't stop there, this act has propelled solar farm production, accounting for 79 new solar facilities with $13 billion in investment.

With guided regulation, we can expect a big uptick in investment into the renewable energy space for years to come. As said by KKR, this brown to green transition is promising for investors in the REC space as the renewable energy space transitions to more "asset heavy sectors". As companies continue to turn green, Innovo Markets will be essential in converting the increased renewable energy from power producers into renewable energy certificates for REC buyers.

Technology Improvements
1) Solar made the greatest strides in 2023, with 60 new solar manufacturing facilities in the US alone. On top that, Solar has become the cheapest form of electricity in almost every country and Solar panel prices have become very affordable, with retail prices decreasing by 40-53% in Europe.

2) Bigger than ever Wind Turbines are being manufactured, expected to be taller than the size of the Washington Monument. Higher towers & bigger blades can increase the Wind Power capacity by 80% in the next couple years according to the NREL. In addition to bigger turbines, countries worldwide are investing in wind energy, its estimated that wind energy is able to power 80 million homes just from 2023 alone. And 2024 is just as exciting, the wind energy production is estimated to increase by 12% in the new year. With all this being said, among all renewable sectors Wind has lagged behind the most. Keep an eye out for technology improvements as Wind has a better 2024.

3)1 in 5 cars purchased in 2023 were electric, and with that battery manufacturing has exploded, with $43.4 billion spent on batteries in the US alone in 2023 thanks to the IRA.

All of these advancements in 2023 amounted to 440 GW added to the grid, up from 295 GW in 2022. This increased dependence on electricity highlights the need for greater organization within the grid. Innovo aims to make the buying and selling of REC's being sent to the grid easier and more cost efficient. Look out for more updates from the Innovo team in 2024...