Renewable energy is set for an unprecedented boom in the United States in the wake of the first-ever climate bill, with solar and wind projects expected to double capacity by the end of the decade and provide the bulk of America’s total electricity supply, a new analysis shows.
The passage of the legislation, known as the Inflation Reduction Act (IRA), will help propel the United States toward the forefront of the clean energy economy, experts predict, helping it compete with China in the manufacture and installation of solar panels, wind turbines, batteries and emerging carbon technology.
The $370 billion climate spending tax credits should help double wind and solar installed capacity by 2030, according to the Updated analysis by research firm Energy Innovation. This additional resource could enable clean electricity to provide anything from 72% to 85% of total US supply by this time, which flows from 795 to 1,053 gigawatts of accumulated solar and wind power.
Ruby Orvis, Senior Director of Analytics, said: energy Cooperat.
“It will really unleash investment in renewables. It has every incentive to grow the industry locally. It is the beginning of a whole leap for renewables.”
About $180 billion in additional capital investment could be spent in renewables by 2030, according to Energy Innovation. A separate research group, Rystad Energy, has Climate forecast More will be pumped into this sector – about $270 billion – resulting in hundreds of thousands of new jobs. “The Inflation Cut Act is a game changer for the US wind and solar industry,” said Marcelo Ortega, renewables analyst at Rystad.
Previously, wind and solar developers had to rely on short-term tax breaks and partner with banks or other large institutions. The new law provides certainty for a 10-year tax credit program and allows credits to be transferred to the developers themselves. There are also billions of dollars for local manufacturing of clean energy components, as well as rebates for people to buy electric cars.
White House He said The legislation would save the country up to $1.9 trillion in climate-related costs by mid-century, by reducing deaths and property damage from extreme heat, floods, droughts and wildfires. Joe Biden called the bill a “historic moment” and pledged to cut US emissions in half this decade.
Climate activists have welcomed the legislation as a long-overdue breakthrough, although they have criticized aspects of the legislation that open up large swaths of public land to oil and gas exploration. The Advantages of fossil fuels I’ve endured a settlement with Joe Manchin, the centrist Democrat and swing Senate voter who has received more donations from the oil and gas industry than any other senator.
However, even with the allocation of land and excess water for excavation, Expect many different analysts That the United States should cut its emissions from global warming by about 40% by the end of this decade, bolstering global efforts to stave off catastrophic climate change.
However, such forecasts can be hampered by variables such as supply chain problems currently hampering electric vehicle production, economic stagnation, problems in building transportation infrastructure to transport clean electricity across the country, and resistance of local communities to new wind and solar energy. developments.
Each number should be taken with a large grain of salt. “There are a lot of big assumptions, but taken together these analyzes show this bill is a big deal and I agree with that,” said James Stock, an economist at Harvard University.
“We need to make sure these projects are built – if we get into a dead end for the traditional American project, that’s going to be a problem. But this promises to be a transformative moment – we’re going to see decarbonization this decade, which is very exciting.”
The spending is likely to attract the attention of China, a leader in producing clean energy. “It is clear that the inflation-reduction act will push the clean energy race to the limit,” said Gernot Wagner, a climate economist at Columbia Business School.
“The specific effect, of course, is anyone’s guess. This is especially true because the IRA is not just a continuation of previous policies. It is a turning point in politics – and a positive turning point at that.”