With the Inflation Reduction Act just signed into law by President Biden, we are meeting at a crucial time in American History - what has been the journey in bringing renewables to the forefront?
I have been working on energy and climate policy in Washington, D.C. my entire career, including in Congress and as President Barack Obama's main climate advisor for a number of years. My background has enabled me to find solutions to advance the voices of the clean energy industry in Washington as the head of the American Clean Power Association. I'm thrilled to be a part of this historic time where political will is aligning with leadership in the White House and the discussion around clean energy is solidifying more and more.
As things stand in 2022, we are proud that today we're powering 58 million American homes with clean energy and the Inflation Reduction Act releases $370 billion to be invested over 10 years. Given the fact that we are cost competitive with fossil fuels and how impressive the technology is, we are going to see incredible growth in the renewables space.
What are some nutshell figures that help us understand where we are today and where you expect the industry to leap to in terms of clean energy deployment?
The American Clean Power Association worked tirelessly to get the Inflation Reduction Act across the finish line for almost two years. After more than a decade of uncertainty and delays, the clean energy industry will finally have the certainty it needs to reach its full potential in this country. This historic undertaking is expected to deliver between 525 and 550 GW of new utility scale clean power over the next decade. With the 211 Gigawatts already available, by 2030 there will be approximately 750 Gigawatts of operating clean power capacity. Importantly, the Act will also create about 550,000 jobs across the country, doubling the current clean energy workforce in the United States.
By 2030, we expect to lower the carbon emissions by 40% and have around 1 million people working in the clean energy sector.
To what extent is building a home grown renewable energy supply chain a priority at the moment to complement this growth?
Without policy, certainty, and predictability, it's hard to argue that onshoring manufacturing is the go-to solution, especially if there's no clear line of sight to deployment. Moreover, it’s nearly impossible to switch huge global supply chains overnight and build new ones. We just permitted our first offshore wind project in the United States, for example, so there needs to be a realistic approach regarding timelines. That being said, we have been making strides in storage technologies, and now that policy is on our side, the industry will soon develop the confidence to set up shop and produce needed equipment and services locally.
What are some of the challenges linked to ramping up sustainable energy development (including from the wider population) in the U.S. and how do you respond to them?
Since this is a huge transition that impacts both consumers and the workforce, it's only natural to be met with questions from the community. We respond to all concerns with facts: The well paid jobs this industry is providing, the hybrid projects that involve wind and solar energy, which is cheap, and the freedom associated with no longer having to depend on global natural gas.
However, permitting and grid integration remain two key bottlenecks that have to be solved as soon as possible. While it's really exciting to see new funding, if it takes a decade to obtain a permit, we’re not really getting very far. These challenges need to be addressed through new legislation.
Looking into the near future, how do you expect The Bill to impact ramp up in the next two to three years?
We're expecting that the Inflation Reduction Act will see movement quickly, with more hybrid projects (wind, solar and battery storage) coming to life and a great deal of new jobs being created or revived.
Do you have a final message about the American clean energy industry?
We need to take into account the truly transformative nature in terms of clean energy, climate benefits and job opportunities that the Inflation Reduction Act will bring to all Americans. In a few short years we went from marveling at 5 GW of renewable energy to bracing for a 550 GW deployment, which is astounding.
This would not have been possible without the commitment and dedication of the White House, Congressional leadership and our ACP members working together to find a solution and set us on this historic path. Our industry, and our association, are poised to make sure we do make the best for the country out of the opportunity that we have been given.
