Without doubt, 2022 will be remembered as one of the most pivotal years in the history of power generation. It was the year that highlighted the folly of concentrated supply.
In Europe, the war in Ukraine raised energy security issues caused by heavy reliance on Russian gas. At the same time, China’s dominance of the solar and energy storage supply chains posed national security questions for energy policy planners.
These concerns have spurred European and North American policy makers to reshape renewable energy industry supply chains to reduce dependence on imported equipment.
On 16 August 2022, the United States took its first and most significant step to reshape the renewables supply chain, with President Biden’s signing of the Inflation Reduction Act. Two key provisions are likely to be game-changing for equipment manufacturers. First, the Act provides a tax credit, known as the advanced manufacturing production credit (AMPC), for US-made renewable equipment.
Second, it incentivises developers of US renewable projects to purchase domestically produced equipment by providing an additional tax credit if they meet domestic content requirement (DCR) thresholds.
On the podcast, host Liz Dennett is joined by Horizons report author Daniel Liu, Head of Asset Commercial Performance at Wood Mackenzie, and Melissa Lott, Director of Research at the Center on Global Energy Policy at Columbia University.
Together they explore the implications for manufacturers, developers and investors off the back of the historic climate bill.
Listen to previous episodes of the Horizons podcast.