American Green Industry – What should we expect?
Despite the turn in Washington’s climate policy, the US market offers enormous opportunities for sustainable energy and environmental technologies. There are also opportunities in the construction industry. Most people on the luminablog are wondering how the US industry will change in the next period.
Biden would strongly promote renewable energy
Even so, the US trend is now towards renewable energy. But that’s not because of Washington’s climate policy, but because of Covid-19. A major change was also felt in the sector dealing with us credits and loans companies.
In 2020, the US could generate more electricity from renewable sources for the first time than coal-fired power plants. The reason for this, however, is not a twist in US energy policy, but lower electricity consumption following the crown crisis and low gas prices: during the pandemic, power suppliers first shut down expensive coal-fired power plants. . and, instead, it is increasingly based on green gas and electricity. Even if the forecasts are currently full of great uncertainty – companies are creating facts: For example, General Electric (GE) announced in late September that it will completely abandon the construction of coal-fired power plants.
While California relies primarily on solar energy for renewables, wind energy is more important in the stormy Midwestern states. In addition to significantly lower production costs, regional incentives and enlargement provisions play a major role.
Much will likely depend on the outcome of the US election for further expansion of alternative energy production: unlike Trump, Biden wants to promote the expansion of renewable energy sources. Its energy policy, for example, envisages the installation of 500 million solar modules and 60,000 wind turbines within five years. He also wants fossil fuels to no longer be subsidized.
US industry is recovering rapidly and modernizing
The US industry has recovered surprisingly quickly after the crown crisis and aims for real growth of over 6% in 2021.
In all sectors, investments are made in structural adjustments and upgrades. The pandemic and blockage have led to rapid changes in consumption and demand, production, sales, and logistics.
With the help of digital solutions and automated production, companies are adapting to changing dynamic framework conditions. Instead of cost-based outsourcing of production capacity to low-wage countries, delivery dependencies from abroad are now reduced.
Sales opportunities for mechanical engineering will improve in 2021. Digitization, automation, and expansion of production are crucial for this. Many areas of US chemistry are likely to return in 2021, but some will not return to pre-crisis levels until 2022. There are significant investments in battery production.
The decrease in production costs for renewable energy contrasts with the different regional markets: in addition to climate, the federal states decide on the electricity mix. President Joe Biden said the expansion of renewable energy is an ethereal reason and the lobby’s resistance to coal, gas and nuclear appears to be broken: most of the Democratic Congress has already expanded tax subsidies for solar and storage projects, and the Interior Ministry agrees to build permits for wind farms totaling 30 gigawatts, which will be built on the east coast by 2030.
US President Joe Biden also wants to promote electromobility. According to spring forecasts, the decline in crown-related sales in the US car market could be almost offset in 2021.