Goldman Sachs: Renewable Power Will Become The Largest Area Of Spending In The Energy Industry In 2021

Goldman Sachs: Renewable Power Will Become The Largest Area Of Spending In The Energy Industry In 2021

PAPALM SPRINGS, CALIFORNIA - FEBRUARY 27, 2019: Automobiles travel along Interstate 10 as wind ... [+] turbines generate electricity at the San Gorgonio Pass Wind Farm near Palm Springs, California. Located in the windy gap between Southern California's two highest mountains, the facility is one of three major wind farms in California. (Photo by Robert Alexander/Getty Images)



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With Joe Biden's presidential election victory last week, climate change is set to be a top priority for the incoming administration, second only to the Covid-19 recovery. As discussed in my recent article, the president-elect has laid out an ambitious roadmap for decarbonizing the US economy, which includes a carbon-free power sector by 2035 and net-zero carbon emissions for the country by 2050. This will require unprecedented investments in green energy technologies: from traditional solar, wind, and storage to frontier tech like hydrogen fuel cells and small modular reactors (SMRs).

The shifting economics of renewables are challenging hydrocarbon incumbents like coal, oil, and even natural gas, which means investors need to understand the finance industry's logic behind its multi-billion dollar decisions.

In June, Goldman Sachs shared their expectation that spending for renewable power