Energy Focus, Inc. (EFOI)

Daily Spotlight: Opportunities in Clean EnergyThe rise in global land and sea temperatures, the melting of Arctic Sea ice, and the alarming frequency of extreme weather events provide evidence that climate change is underway. United in their concern over greenhouse gas emissions (GHG) stemming from fossil fuel power plants and car and truck tailpipes, 194 member states of the United Nations signed the Paris Agreement in 2015. This legally-binding international treaty on climate change seeks to limit global warming to well-below 2.0, preferably 1.5, degrees Celsius, compared to pre-industrial levels. Concern over the health of the planet and its inhabitants, as well as reluctance to be reliant on overseas fuel sources, prompted governments around the globe to develop and deploy clean, renewable sources of energy. In the U.S., the Inflation Reduction Act of 2022, enacted by the 117th Congress, calls for the investment of $391 billion in programs and incentives relating to energy security and climate change. It includes over $120 billion for renewable energy and grid energy storage, tax credits for wind power, solar power, and clean energy manufacturing, electric vehicle incentives, and other energy efficiency measures. We expect the IRA to kick clean energy into a higher gear. Already, wind power as a percentage of U.S. electricity generation has grown from less than 1% in 1990, to 10.2% by 2022, according to the U.S. Energy Administration. The global solar power market is also large and growing quickly. It generated $235 billion in 2022 revenues, and is projected to rise at a compound annual growth rate (CAGR) of 6.9% to $293 billion in 2029. For more insights and ideas into the Clean Energy sector, see our latest Industry Review & Outlook for Clean Energy.