WASHINGTON DC – In less than a decade, the decarbonization efforts enshrined in the Inflation Reduction Act (IRA) of 2022 will bring annual investments into domestic renewable energy deployment from $64 billion last year to nearly $114 billion in less than a decade, according to a new Wood Mackenzie report.
This will be the case by 2031, according to “Boom time: what the Inflation Reduction Act (Act) means for U.S. renewables manufacturers.” Wood Mackenzie, an energy research and consultancy group under Verisk, set out to assess how the IRA legislation could impact the country and the renewables industry and ultimately found that impact would mean something more like changing the whole field.
“The IRA will completely reshape the renewables supply chain in the U.S., incentivizing the reopening of shuttered facilities as well as provide opportunities to build entire equipment supply chains from scratch,” Daniel Liu, principal analyst at Wood Mackenzie and lead author of the report, said.
The IRA, one of the Biden administration’s key legislative focuses early on, will influence the scale of growth in different ways, such as through major expansion of U.S. renewables equipment manufacturing capacity. Some of the largest spikes to come will be in solar utility installed capacity. However, the capacities of solar distributed, both offshore and onshore wind and storage deployments, will continue to tick upward as well.
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