Decarbonizing 100% of the U.S. power grid would cost $4.5 trillion by 2030

According to a recent report by energy consulting and research firm Wood Mackenzie, rapid decarbonization of the U.
S.
power grid will cost $4.
5 trillion
by 2030.

What is $4.
5 trillion? In 2018, U.
S.
GDP topped $20 trillion for the first time to reach $20.
5 trillion, compared to $700 billion
in 2018.
That is, the cost of rapidly decarbonizing the US power grid is equivalent to consuming 22% of GDP
.

That means the U.
S.
grid will need massive wind and solar power, enhanced transmission networks, and massive energy storage deployments
.
Of the $4.
5 trillion, the largest share of cost is the estimated need for 900GW of storage capacity
.

Wood Mackenzie's report found that by slowing down the process, it was concluded that costs could be significantly reduced
by 2050.
This is mainly due to savings
from energy storage hardware and falling costs of wind and solar energy.

Dan Shreve, global head of wind research at Wood Mackenzie, said: "The large-scale deployment of wind and solar power will require significant investment in utility-scale storage to ensure grid resilience
.
”

In total, more than 1,600GW of new solar and wind energy is needed to decarbonize the U.
S.
grid, with 130GW currently installed, less than one-tenth
.

"The challenge of achieving 100% renewable energy goes far beyond the capital cost
of new generation assets.
Most notably, it requires a massive redesign of the electricity market from traditional energy-only construction to a capacity market
.
”

While the investment figures equate to $35,000 per U.
S.
household, it is shocking that Wade Schauer, head of power research for the Americas at Wood Mackenzie, said, "Over the past six months, Wood Mackenzie has analyzed actual hourly wind and solar power patterns
in all major U.
S.
electricity markets.
" The data shows that in most parts of the United States, the supply of intermittent renewable energy across the system reaches 50%.

With more than 50%, the grid-connected challenge accelerates
rapidly.
Achieving full decarbonization will require long-term energy storage, and grid capacity will need to double to be able to adapt
.
”

On the other hand, the high cost pressure of 100% renewable energy makes natural gas also have certain opportunities
.
Report modelling shows that if 100% renewable energy were replaced by 80% renewable energy and 20% of existing natural gas assets, renewable energy costs would fall by 20%, while energy storage costs would fall by up to 60%.