Sourced from Deutsche Welle
By Jo Harper
Only 10% of global energy utility companies are expanding their renewable energy capacity at a faster rate than their gas or coal-fired capacity. That is the main finding of a study by Galina Alova from the Smith School of Enterprise and the Environment at the University of Oxford.
The study, published in research journal Nature Energy, found that of the 3,000 utilities studied most remain predominantly invested in fossil fuels. And of those prioritizing renewable energy growth, 60% had not halted expansion of their fossil fuel portfolios.
The companies with the slowest transition tended to be larger and from outside Europe, Alova told DW. “The renewables-prioritizing cohort of utilities that I identified comprises companies that are overall larger and own a larger market share in the countries where they operate, compared to the other companies,” she said. “The key issue is that the majority of these companies continue in parallel to expand their fossil fuel-based capacity, although they do so at a slower rate.”
Her research highlights a gap between what is needed to tackle the climate crisis and “the actions being taken by the utility sector,” she added. These companies face the risk of carbon lock-in, given that a third of their fossil fuel capacity has been added in the last 10 years, so is here to stay for decades. “Unless it is retired early, it will render significant shares of their portfolios stranded,” Alova said
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