22.05.2024
The power sector is facing significant challenges in adapting to the demands of the 21st century, particularly with the rise of electric vehicles (EVs) and the need for a green transition. The sector must invest in smart grids, which are essential for integrating renewable energy sources and managing the increased electricity demand from EVs and AI systems. The International Energy Agency estimates that annual investment in smart grids needs to double to $600 billion globally by 2030 to meet net-zero emissions targets. However, there is a substantial investment gap, and national governments are seen as crucial in financing and coordinating these long-term investments. The Biden administration's recent initiatives to support structural changes in the power sector are a step in the right direction, but a more comprehensive federal industrial policy is needed to ensure a fair and efficient transition to a sustainable electric mobility future.