THIS WEEK IN CLIMATE & CLEAN ENERGY WINS: WEEK OF 3/3/23

A new report from Climate Central found that red states are leading the U.S. in solar and wind production, with overall capacity increasing by 16% last year. That’s enough electricity to power 64 million households. The Inflation Reduction Act’s incentives for U.S. manufacturing are driving huge waves of EV investment, and a new study by BloombergNEF found that the clean energy transition is now hard-wired into the U.S. economy and is here to stay. Solar energy is also set to overtake other energy sources by 2027, surpassing gas in three years and coal in four. 

The Biden Administration announced $315 million to advance reliable, clean energy in rural and remote communities, $48 million in funding to improve the reliability and resiliency of America’s power grid, while  Republican lawmakers DeSantis, Pence, and Manchin are launching a multi-million dollar campaign to pressure swing-state lawmakers to make it easier to build future energy projects. 

Overseas, Energy Secretary Granholm met with top energy officials from the UK to discuss energy security and the shift to renewables, all while the Biden Administration’s plans to make the U.S. a clean energy superpower are increasing pressure on China in what is to become a clean energy arms race. 

On the private sector front, Audi is considering plans to build a factory in the U.S., following in the footsteps of other car, battery, solar panel, and computer chip manufacturers taking advantage of incentives provided by the national clean energy plan. Tesla’s new model sedan could catapult the EV maker’s revenue to $400 billion by 2030. 

And providing great examples of public-private partnerships in the works, the U.S. Postal Service plans to buy nearly 10,000 Ford E-Transit battery EVs and an equal number of gasoline-powered models from Chrysler in their transition to clean energy delivery services. Nissan announced new targets to have EVs make up over 55% of their global sales by 2030, and the Department of Energy announced a $375 million loan to Li-Cycle to expand their facility for reprocessing materials in Rochester, New York. Finally, Transmission Developers Inc.’s 339-mile underwater power line is on its way to completion after 15 years of development, setting an example for future projects. 

On the state level,  Illinois passed legislation removing the ability of local governments to limit or ban wind and solar power, and the Biden Administration is making moves to expand sales of gasoline with a higher ethanol blend in Midwest states. 

In private sector highlights this week, Nissan announced new targets to have EVs make up over 55% of their global scales by 2030, the DOE announced a $375 million loan to Li-Cycle, USPS plans to buy nearly 1,000 transit battery EVs for their delivery services, and Tesla’s Model 2 Sedan could catapult EV maker’s revenue to $400 billion by 2030: 

• Nissan is aiming to have EVs make up over 55% of their global sales by 2030.  [Reuters, 2/27/2023]
  • The company is also looking to add a second source of U.S.-produced batteries to ensure compliance with the Inflation Reduction Act. 
• The Department of Energy announced a $375 million loan to Li-Cycle to expand their facility in Rochester, NY. [Canary Media, 2/27/2023]
  • The Rochester facility will reprocess materials from Li-Cycle battery recycling sites. 
• Transmission Developers Inc.’s 339-mile underwater power line from Quebec to Queens, the Champlain Hudson Power Express (CHPE), is on its way to completion after 15 years of development. [E&E News, 3/01/2023]
  • CHPE serves as a model for cleaning up the city’s fossil fuel-heavy grid and enabling the shutdown of some of the dirtiest power plants in the state, setting an example for future projects. 
• The U.S. Postal Service plans to buy 9,250 Ford E-Transit battery EVs and an equal number of gasoline-powered models from Chrysler. [Reuters, 2/28/2023]
  • USPS also said it was ordering more than 14,000 charging stations to be deployed at its facilities and is on track to more than double its planned EV delivery purchases, buying at least 66,000 EVS through 2028. 
• Audi is considering plans to build a factory in the U.S., following in the footsteps of other car, battery, solar panel, and computer chip manufacturers taking advantage of incentives provided by the Inflation Reduction Act. [Forbes, 2/28/2023]
• Tesla’s rumored Model 2 Sedan could catapult the EV maker’s revenue to $400 billion by 2030, analysts predict. [Benzinga, 2/27/2023]
  • Model 2 will be 15% shorter and 30% lighter, with a 25% smaller-sized battery, relative to the Model 3. The Model 3 is currently Tesla’s cheapest vehicle.

New reports found that red states are leading the U.S. in solar and wind production, the clean energy transition is now hard-wired into the U.S. economy, and solar energy is set to overtake other energy sources by 2027:  

• A new report found that red states are leading the U.S. in solar and wind production, with overall capacity increasing by 16% in 2022. [Guardian, 2/26/2023]
  • According to data from Climate Central, Texas, Iowa, and Oklahoma have the highest wind capacity in the U.S., while California, Texas, and Florida have the highest solar capacity.
• The incentives for U.S. manufacturing from the Inflation Reduction Act and other elements of the clean energy plan are driving huge waves of EV investment in the U.S. [Washington Post, 2/24/2023]
  • For example, Audi announced plans to boost U.S. production to access subsidies and tax breaks from the Inflation Reduction Act.
• A new study by BloombergNEF found that the clean energy transition is now hard-wired into the U.S. economy. [BloombergNEF, 3/1/2023]
  • The U.S. is now firmly on the clean energy transition path to drive down emissions and create economic opportunities, investments in clean energy generation, and technologies shattering records in 2022. 
• A new report showed that banks gave 81 cents in financing support to low carbon energy supply for every dollar they provided to fossil fuels in 2021. [Reuters, 2/28/2023]
  • They will need to ramp up their commitments to meet climate goals, several climate scenarios suggesting that to limit global temperature rises to 1.5 degrees Celsius above the pre-industrial average, the world needs to be investing $4 in renewable energy for every $1 invested in fossil fuels by 2030.
• Solar energy is set to overtake other energy sources by 2027. [Financial Times, 2/27/2023]
  • According to the International Energy Agency, solar will overtake gas-fired generation in three years and coal in four years.  

The Biden Administration announced $315 million to advance reliable, clean energy in rural communities, $48 million to improve the reliability and resilience of America’s power grid, and the Departments of Energy, the Interior, Commerce, and Transportation convened leaders at an inaugural summit to discuss progress on the development of floating offshore wind in the U.S.: 

• The Biden Administration announced $315 million to advance reliable, clean energy in rural and remote communities.  [Department of Energy Press Release, 3/1/2023]
  • $300 million in funding will go toward projects that increase energy affordability and promote climate resilience, and $15 million will go toward a prize competition helping rural communities build capacity for clean energy development and deployment. 
• The Department of Energy announced $48 million in funding to improve the reliability and resiliency of America’s power grid. [Department of Energy Press Release, 2/24/2023]
  • The new program focuses on developing power grid technologies that can improve control and protection of the domestic power grid. This will increase resilience against extreme weather events, ensuring clean energy and transportation options can reach communities across the country. 
• The Departments of Energy, the Interior, Commerce, and Transportation convened leaders at the inaugural Floating Offshore Wind Shot Summit to discuss significant progress toward the development of floating offshore wind in the U.S. [Department of Energy Press Release, 2/24/2023]
  • Energy Secretary Granholm kicked off the summit by affirming the goals of the Floating Offshore Wind Shot to drive U.S. leadership in floating offshore wind design, development, and manufacturing, reduce the costs of this technology by over 70% and deploy 15 gigawatts by 2035. She announced efforts to jumpstart West Coast offshore wind transmission planning and research and partnerships.  
• Department of Energy Secretary Granholm met with top energy officials from the UK this week to discuss energy security and the shift to renewables. [Bloomberg, 1/27/2023]
  • In her first meeting with the UK Secretary of State for Energy Security Grant Shapps, Granholm discussed the current state of global energy markets and both countries’ roles in addressing immediate energy security concerns. “[Russia’s war with Ukraine] has shown the UK, the US, and countries the world over the need for ever greater energy independence, fueled by moves away from fossil fuels and towards homegrown sources like renewables and nuclear,” Shapps said in a statement. 
• Republican lawmakers are launching a multimillion-dollar campaign to pressure swing-state lawmakers to make it easier to build energy projects such as pipelines and power lines. [Politico, 2/28/2023]
  • The push from Governor DeSantis, former Vice President Pence, and Senator Joe Manchin could speed federal approvals for energy initiatives that members of both parties champion — including renewable energy projects that are vital for President Joe Biden’s climate agenda. 
• The Biden Administration’s plan to make the U.S. a clean energy superpower is increasing pressure on China in what is to become a clean energy arms race. [SP Global, 2/28/2023]
  • The Inflation Reduction Act is expected to attract billions in investment across existing and future technologies, but its biggest international impact will be on China, which has made clean energy the cornerstone of its economic transformation plan.

On the state level, Illinois passed legislation this month removing the ability of local governments to limit or ban wind and solar power, and the Biden Administration is making moves to expand sales of gasoline with a higher ethanol blend in Midwest states: 

• Illinois passed legislation this month removing the ability of local governments to limit or ban wind and solar power. [Inside Climate News, 2/27/2023]
  • The legislation followed efforts in 15 counties, home to large amounts of land available to wind and solar, to pass restrictions on new wind and solar development.
• The Biden Administration is recommending a rule for approval that would allow expanded sales of gasoline with a higher ethanol blend in certain U.S. Midwest states. [Reuters, 3/1/2023]
  • The move comes directly from requests by governors in Midwestern states.