Factbook 2023: America’s Sustainable Energy Progress
The year 2022 will be remembered as a pivotal period for investments in renewable energy, energy storage, and sustainable transportation, according to the eleventh edition of the Sustainable Energy in America Factbook. Published by BloombergNEF (BNEF) and the Business Council for Sustainable Energy (BCSE), this comprehensive reference document provides a year-over-year comparative analysis of the transformation of the American energy sector. The Factbook was made publicly available on March 1 and can be freely downloaded from the BCSE’s website.
The Factbook, serving as an authoritative guide to the U.S. energy market, delivers valuable insights into the expanding role of energy efficiency, the growth of the renewable energy sector, the increasing importance of natural gas, and the emergence of new areas such as digitalization, micro-grids, offshore wind, hydrogen, and renewable natural gas.
The eleventh edition of the Factbook goes beyond presenting raw data—it analyses the year-on-year and long-term performance of clean energy sectors within the U.S. energy economy. The Factbook is tailored to meet the needs of a wide range of readers, from energy professionals and policymakers to students interested in the future of energy. It provides a detailed exploration of market dynamics, investment trends, and technological advancements.
However, the year 2022 was not without its challenges. The conflict in Ukraine significantly impacted the global energy sector, resulting in supply chain disruptions and escalating energy costs. The United States, where 40% of electric power is derived from natural gas, felt these impacts acutely, experiencing the first significant surge in gas prices in many years due to increased demand in Europe. Despite these challenges, natural gas continues to play a key role in the transition from coal power.
While commodity prices for key components of renewable technologies—steel (used in wind turbines), polysilicon (used in solar panels), and lithium (used in batteries)—all saw a rise in 2022, this did not dampen the enthusiasm for electric vehicles (EVs). Notably, EV drivers were largely insulated from the energy cost increases that affected their combustion engine counterparts. This was reflected in a significant jump in EV sales in the United States, from about 650,000 vehicles sold in 2021 to nearly a million in 2022, accounting for about seven percent of all new car sales.
The renewable energy sector provided a record 23% of U.S. power needs in 2022 and is recognized as the most cost-effective electricity-generating technology in many regions globally. To achieve the Biden-Harris Administration’s goal of decarbonizing the U.S. power system by 2035, it is estimated that the construction of about 70 gigawatts of renewable energy per year is necessary. At present, the rate of development stands at about 30 gigawatts per year.
Last year, over $1.1 trillion was invested globally in new energy transition technologies, with U.S. capital contributing a record $140 billion to this total. China accounted for almost half of the overall investment.
Although greenhouse gas emissions have rebounded following the COVID-19 pandemic, they remain below 2019 levels, which are projected to be the peak. As the power sector rapidly decarbonizes, efforts to cut emissions will need to address industries like steel and cement production. As we head into a critical period in the energy transition, the Sustainable Energy in America Factbook will continue to provide the data and insights necessary to understand this complex and evolving landscape.
