Electrification and Fuel SwitchingDownload section
As the electricity system decarbonizes, many energy-consuming activities in transport, industry, and buildings can reduce emissions by switching from carbon-intensive fossil fuels to electricity generated from large-scale renewables, coupled with energy storage.
Electrification to meet the energy demands of industry, transport, and buildings is part of the long-term lowest cost pathway to lower emissions. As electricity generation moves to low carbon energy sources, electricity will become the least emissions-intensive energy source available.
Activities in sectors that are not suited to electrification can switch to sustainable bioenergy, or other lower carbon fuel sources, also reducing emissions. These transitions will require investment in supply chain contributors, such as lithium-ion producers for batteries and new bio-fuel production capability, as well as infrastructure, such as electric charging stations.
CEFC investment commitments in this area were largely delivered through the Clean Energy Innovation Fund and our co-financing programs.