A recent report by DNV projects that $12 trillion will be invested in renewable energy and grid infrastructure in the U.S. and Canada by 2050. This investment is driven by a significant shift towards renewables as the two countries aim to reduce their reliance on fossil fuels. Here are some key insights from the report:

1. Investment Breakdown:
   • The majority of this spending will go towards expanding and modernizing the grid, which will need to increase its capacity 2.5 times to accommodate the growing demand for renewable energy​ Global Renewable News​Renewable Energy Magazine.
   • Capital expenditure on renewables is expected to surpass that of fossil fuels by 2040, reflecting a major transition in energy sources​ Renewable Energy Magazine.
2. Decarbonization Trends:
   • Fossil fuel consumption in North America is projected to drop from approximately 80% of the energy supply to less than 50% by 2050. Coal production is expected to plummet by 85%, while oil demand will see a 75% reduction​ World Energy​Renewable Energy Magazine.
   • The Inflation Reduction Act (IRA) and supportive policies in Canada are pivotal in accelerating this transition, contributing to a projected 15-fold increase in solar and an 8-fold increase in wind energy capacity​ Global Renewable News​Renewable Energy Magazine.
3. Electrification Impact:
   • Electrification will be a critical component of the energy transition, with predictions that it will account for 41% of overall energy demand by 2050 ​World Energy​Renewable Energy Magazine. This shift includes the adoption of electric vehicles and new technologies like heat pumps and hydrogen production​ Global Renewable News.
4. Future Energy Mix:
   • By 2050, solar energy is anticipated to be the largest electricity producer in North America, potentially generating almost 50% of the region’s electricity. Wind energy is also expected to contribute significantly, making up 35% of the electricity supply​ Global Renewable News​Renewable Energy Magazine.

This investment not only promises to enhance energy efficiency but also aims to halve household energy bills by 2050. While substantial progress is expected, the report indicates that the U.S. and Canada will still face challenges in achieving net-zero carbon emissions by mid-century​

World Energy​

Renewable Energy Magazine.

For a more detailed exploration of the findings, you can read the full report

Renewable Energy Magazinetps://www.nacleanenergy.com/alternative-energies/12-trillion-to-be-spent-on-renewables-and-grid-infrastructure-in-the-u-s-and-canada-by-2050—report).