My Turn: U.S. is falling behind in the renewable energy race

By Emma Loren

By the year 2050, it is estimated that 90% of the world’s energy can and should be supplied by renewables. Countries like Iceland are above this curve, as almost 100% of their energy comes from geothermal energy, a renewable source. With countries like Iceland, China, and Norway in the lead, it’s hard not to notice that the United States continues to lag. While the U.S. has made noticeable strides in renewable energy, it is falling behind in the transition compared to other major global economies.

Currently, the United States gets only 20.3% of its energy from renewable sources, which is behind the global average of 30%, despite having the resources and potential to be a leader. Meanwhile, China firmly establishes itself as a dominant force in the renewable energy sector, particularly in solar panel manufacturing. In an impressive show of growth, China increased its renewable energy generation capacity by 301 gigawatts (GW) in 2023, which includes solar, wind, and hydro. This increase followed a addition of approximately 168 GW in 2022, a 79% increase from 2021. Notably, this accounted for about 59% of the total global additions to renewable capacity in 2023. In comparison, the United States added just 33.8 GW of new clean energy projects in 2023, allowing for a 12.5% increase from the previous year.

This map (click to enlarge), created with data from the World Bank, shows how countries around the globe are progressing in renewable energy consumption. As the urgency of climate change intensifies, this map serves as a reminder of where we stand and how far we still have to go.

The United States’ slow transition to clean energy sources can be blamed on policy inconsistencies, infrastructure, and historic dependence on fossil fuels. Unlike countries such as Germany and Denmark that have established long-term energy policies, the U.S. lacks a bipartisan unified approach, resulting in stagnant progress. Political shifts in leadership often lead to changes in energy dynamics, causing uncertainty for renewable energy implementation and gaining the interest of investors.

Infrastructure challenges further hamper progress. The U.S. power grid, much of which was built in the mid-20th century, is not designed to handle the variability of renewable sources like wind and solar. Unlike fossil fuel plants that produce a steady flow of electricity, renewables generate power intermittently; solar panels only work when the sun is shining, and wind turbines need a wind in order to spin. This inconsistency requires a more flexible, modernized grid that balances supply and demand in real time. However, the challenge of modernizing the grid is complex due to America’s historic support for the fossil fuel industry.

The continued support for the fossil fuel industry is one of the main reasons why the U.S. is lagging in the global clean energy transition. Many benefits given to fossil fuel companies were established over a century ago and continue to give them an unfair advantage today. Despite evidence of the urgency to shift to renewables, U.S. policies still lean to favor oil and coal through subsidies and loopholes that ultimately give then an advantage. For example, the Percentage Depletion Allowance lets oil and gas companies reduce their taxes by deducting a set percentage of their income — often more than what they spend. Other industries lost this tax break long ago, but fossil fuel companies continue to see benefits. Additionally, another benefit known as Intangible Drilling Costs, allows these companies to deduct most of their drilling expenses, thus gaining more profits. These oil, gas, and coal companies can even lease federal lands for extraction at bargain rates.

These incentives make it harder for renewables to compete on a level playing field. In 2020 alone, the U.S. provided $649 billion in fossil fuel subsidies, according to the International Monetary Fund. If we want to tackle climate change seriously, we need to stop these subsidies and give renewables a fair chance to grow. The U.S. has made progress in renewables, and wind energy alone has increased, contributing to nearly 10% of the nation’s electricity generation, which is projected to reach 20% by 2030. The Inflation Reduction Act and Bipartisan Infrastructure Law highlighted some positive progress regarding climate investments. But with a change in administration, these two pieces of legislation can go away. Therefore, to catch up in the global clean energy race, we need lasting investments and a complete redesign of the outdated power grid.

Lincoln resident Emma Loren is earning a master’s degree at Georgetown University studying environment and international affairs, focusing on energy policy and science.

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