Like the rumbling of an approaching (but welcome) storm, the impact of the US Inflation Reduction Act is already being felt in the American renewable energy sector.
GE onshore wind CEO Vic Abate told Recharge in an interview that he expects the US wind market to double over the next decade, helped by the historic climate law, although the industry is still waiting to hear some of the key fine details of the act.
The impression of America as the place to be in green energy increases by the week, helped by booming tower orders, huge infrastructure deals in connection with the $8bn SunZia mega-project and ever-increasing offshore wind targets set by states.
The pace of the US energy transition is also creating controversies, as shown by the row over a Senate decision to reinstate tariffs on certain solar equipment imports which some said could halt America’s PV boom in its tracks if enacted.
Offshore wind giant Orsted fired another warning shot at the UK government this week when its finance chief Daniel Lerup warned the Danish group could see “more value creation elsewhere” unless things change in Europe’s largest market for wind at sea.
Specifically, Orsted would like project permitting speeded up – reflecting the European renewables sector’s number one priority – and an easing of the cap on contract-for-difference strike prices that mean it is tough for developers to make a decent return.
Lerup spoke as Orsted posted first quarter results that showed rising earnings from its operating projects.
A new group of development pioneers is following the lead of Orsted and other offshore wind pacesetters – but this time the generation source is solar.
Offshore PV received a huge boost this week when the Netherlands set a 3GW 2030 target, a move described by one of the first-movers in the sector hailed as a “gamechanger”.
