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This content is taken from the Hanyang University's online course, Global Resource Politics: the Past, Present and Future of Oil, Gas and Shale . Join the course to learn more.

Skip to 0 minutes and 1 second The production of new and renewable energy in the United States is continuously increasing. According to the US Department of Energy, a third of new power generation will come from new and renewable energy within 3 years and including solar, wind and geothermal energy will reach 17,000 MW. Solar energy production itself increased a whopping 418% from 2010 to 2014 to 12,000 MW. The EU’s push for a low carbon future is well epitomized in its 20-20-20 goals. What does the 20-20-20 goals of the European Union mean? There are three 20s. The first 20 is to reduce CO2 reduction by 20% to 2020. The second 20% is to increase the renewal energy. The third 20% is to increase efficiency energy.

Skip to 1 minute and 20 seconds The 2030 Energy Strategy and the 2050 Roadmap puts a policy priority on the transition toward a sustainable energy system, by way of supporting renewables (RES), energy efficiency measures and reducing the share of fossil fuels in the energy mix. Here, the concept of grid parity is important. “Grid parity” is a point where renewable sources like solar and wind cost the same or less as fossil fuels like coal, oil, and natural gas. Grid parity for solar and wind power is becoming a reality in various European countries, which is a function of pro-renewable energy regulation, subsidy policies, and rapidly faltering installation costs.

Gas and renewables: competitors?

The relatively low installed base of renewables means that taking any meaningful share of new electricity going forward will require dramatic growth, more so than in the case of gas.

Global gas demand is caught between cheap coal and continued policy support for renewables.

This is one of the reasons why demand for natural gas is declining in Europe and the US. What are most important policy changes in Europe and the US as regards to renewable energy in recent years?

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Global Resource Politics: the Past, Present and Future of Oil, Gas and Shale

Hanyang University