Specifically, the “Aligning Stimulus with Energy Transformation” report presents the scenarios of the US and the UK, aligning the economic recovery with the decarbonization.
Concerning the US, if the current stimulus pledged to support legacy fossil fuel sectors ($72 billion USD) was allocated to advance modern, flexible, high-renewable power systems, over 100 GW of new renewable energy capacity could be achieved.
This would result in over 500,000 new jobs in renewable energy, 175%2 more new jobs than if stimulus was focused on legacy, inflexible energy systems.
In addition, Warstila conducted a scenario for a carbon neutral electricity sector for the United States by 2035. Accordingly, the model notes that a cost-optimal carbon neutral power system could be achieved with 1,700 GW of new wind and solar, supported by battery energy storage and flexible gas-fired power capacity operating on renewable bio- or synthetic fuels.
The fully renewable power system would create 8.7 million jobs in renewable energy alone and have an expected investment cost of $1.7 trillion USD.
Moreover, the analysis noted that the current energy stimulus, if used to leverage private sector funds towards the energy transition, could help the United Kingdom to reach a 60% renewable power system and cut power sector emissions by 58%. The system would have 60 GW of renewable energy, supported by 7 GW of battery energy storage and 14 GW of flexible gas-based generation for flexibility. This would create over 120,000 jobs in the renewable energy sector alone and put the UK on track to meet its net-zero emissions target by 2050.
Sushil Purohit, Energy Business President, Wärtsilä, commented that
Across the G20 countries, the stimulus ‘scales’ are strongly weighted to support legacy inflexible power systems, despite the agenda for rapid decarbonisation that’s underway worldwide. In our modelling of two world-leading energy markets: the US and the UK – it’s clear that both countries stand at the brink of a clean energy revolution, that could provide a blueprint for other economies to follow.
Concluding, to learn more about the report click here.