This Week in Climate & Clean Energy Wins: Week of 2/10:

See our state by state breakdown here.

In a landmark week for new report announcements, the Energy Information Administration found that solar energy is set to dominate new U.S. electric generation capacity by 2023, rising wind and solar power will dominate the global power supply by 2026, and renewable energy and nuclear power will meet almost all of increased electricity demand by 2026. Because of these wins, IEA Executive Director Fatih Birol said the global power sector is approaching a “tipping point” in the transition to renewable energy. Provisions from the Inflation Reduction Act could cut the cost of U.S.-made EV batteries by 50%, a green subsidy race between the U.S., China, and the E.U. will help accelerate cost declines and the rollout of clean technology. 

President Biden touted the success of the Inflation Reduction Act’s $370 billion in climate spending in his State of the Union address, and the Administration announced $74 million in funding to advance geothermal systems. On the state level, states are attracting clean energy developers through revamped subsidies, red states previously reliant on coal power in the Sun Belt and Midwest are on the verge of solar-farm booms, and Wisconsin utilities are investing in battery storage to aid the clean energy transition.

A vital EV battery nickel product will be made in the U.S. for the first time thanks to Nth Cycle, PG&E announced a new virtual power plant program enrolling up to 7,500 customers, and SK Battery America Factory has reached its clean energy job hiring goals more quickly than expected: 

• A vital EV battery nickel product will be made in the U.S. for the first time [Electrek, 2/2/3023]
  • In order for U.S.-manufactured EVs to qualify for the Inflation Reduction Act’s tax credit, a proportion of the battery minerals must be extracted or processed in the U.S. Nth Cycle announced they will start producing mixed hydroxide precipitate (MHP), a key component for EV batteries stateside. 
• PG&E announced a new program to create a virtual power plant by enrolling up to 7,500 new and existing home solar and battery customers. [Bloomberg, 2/6/2023]
  • The company will pay Sunrun battery owners for power to avoid blackouts in their service area. 
• SK Battery America Factory reached its employment goal of hiring 2,600 individuals by the end of 2024. [CleanTechnica, 2/9/2023]
  • The company is now expecting to employ around 3,000 people in the coming year due to increased EV demand. 

Provisions from the Inflation Reduction Act could cut the cost of domestically produced EV batteries by 50%, and the EIA announced several projected wins for solar energy capacity, wind and solar power, and renewable energy and nuclear power: 

• Since Joe Biden signed the historic Inflation Reduction Act into law, companies have announced more than 100,000 clean energy jobs, according to a report released by Climate Power. [CNBC, 1/7, 2023] [Bloomberg, 1/6/2023]
• Provisions from the Inflation Reduction Act could cut the cost of U.S.-made EV batteries by 50%  [Car and Driver, 2/3/2023]
  • Section 45X of the Inflation Reduction Act, which funds 10 years of production tax credits for battery cell manufacturing,  could cover the entire cost of domestic battery manufacturing within the law’s ten-year lifespan.
• According to a new report from the Energy Information Administration (EIA), solar energy is set to dominate new U.S. electric-generating capacity in 2023.  [Reuters, 2/6/2023]
  • Developers plan to add over 29.1 GW of solar energy generation this year, representing 53% of planned new capacity. Texas and California will have the most new capacity, with 7.7 GW in Texas and 4.2 GW in California.
• The EIA said that rising wind and solar power will dominate the global power supply in the next three years, countering emissions from increased energy use. [Reuters, 2/8/2023]
  • Global electricity demand is expected to rise by 1% as wind and solar power’s share of the global power generation risk is projected to rise to 35%.
• IEA also found renewable energy and nuclear power will meet almost all of increased electricity demand in the next three years. [Washington Post, 2/8/2023]
  • IEA Executive Director Fatih Birol said the global power sector is approaching a “tipping point” in the transition to renewable energy.
• A green subsidy race between the U.S., China, and the EU will help accelerate cost declines and the rollout of clean technology. [Reuters, 2/6/2023]
  • State aid will also drive economies of scale, benefiting customers globally. 
• Analysis by American Clean Power found the Inflation Reduction Act catalyzed $40 billion in investments in the last few months of 2022. [The Atlantic, 2/8/2023]
  • The energy transition is becoming a lucrative race to the top, with investment surpassing $1 trillion in 2022 to capture economic, security, and geostrategic benefits.

This week, the Biden Administration highlighted the success of the Inflation Reduction Act’s $370 billion in climate spending in the State of the Union address, announced $74 million to advance geothermal systems, and granted a $2 billion loan to an EV recycling battery plant in Nevada: 

• In his State of the Union address, President Biden  touted the remarkable changes to the nation’s energy and transportation systems stemming from the Inflation Reduction Act and its $370 billion in climate spending. [E&E News, 2/8/2023] 
  • “The Inflation Reduction Act is also the most significant investment ever in climate change — ever,” Biden said. “Lowering utility bills, creating American jobs, leading the world to a clean energy future.”
• The Biden Administration announced $74 million to advance geothermal systems. [Department of Energy, 1/8/2023] 
  • The DOE announced funding for up to seven pilot projects that will test the efficacy and scalability of enhanced ESGs. 
• Secretary Granholm announced this week that Redwood Materials, an EV recycling battery project, was granted a $2 billion loan to help quicken our Made in America battery production. [Associated Press, 1/10/2023] 
  • With the investment, Redwood Materials is expected to create about 3,400 construction jobs and employ about 1,600 full-time workers. 

On the state level, states are attracting clean energy developers through revamped subsidies, Red states in the Sun Belt and Midwest are on the verge of solar-farm booms, and Wisconsin utilities are investing in battery storage to aid the clean energy transition: 

• States are revamping subsidy schemes to draw clean energy developers to their states following passage of the Inflation Reduction Act. [Financial Times, 2/7/2023]
  • The law is driving conversations in states across the country about how to capture clean energy investment.
• Ohio and Indiana, two Republican-led states long dependent on coal power, are on the verge of solar-farm booms. [Bloomberg, 2/7/2023]  
  • Developers are expected to install 15 gigawatts’ worth of new photovoltaic panels in the two states, enough to power about 12 million households. 
• Wisconsin utilities are investing in battery storage to aid a clean energy transition. [Wisconsin Public Radio, 2/3/2023] 
  • WEC Energy Group is working on a long-duration energy storage pilot project at its Valley Power Plant in Milwaukee. Alliant Energy also plans to develop a battery energy storage system in Sheboygan.