The American Clean Power Association has released its latest report, which reveals that the US utility-scale clean energy sector has exceeded $150 billion in capital investment since the Inflation Reduction Act was signed into law in August 2022. The study provides a statistical breakdown of where the investment has been allocated, with a particular focus on the manufacturing facilities that will provide clean energy across America.
Since the Act's signing, there have been 46 announcements of new, expanded, or reopened utility-scale manufacturing facilities, with 26 solar manufacturing facilities, 10 battery storage manufacturing facilities, 8 wind manufacturing facilities, and 2 offshore wind manufacturing facilities. In addition, 18,000 new manufacturing jobs have been created, and nearly 96,000 MW of clean energy capacity has been announced. The report also highlights that $4.4 billion in announced consumer savings will be realized, and 24 million Americans will be served by utilities that have announced consumer savings.
Alabama, Arizona, Colorado, Georgia, Iowa, Michigan, Minnesota, New Mexico, New York, Ohio, Tennessee, and Texas are among the states that will see new or expanded factories. However, the study also emphasizes that a streamlined and expedited permitting process is essential for the anticipated clean energy buildout to happen in a timely manner. Without it, 100 GW of clean energy could be at risk of significant delays.
Jason Grumet, CEO of American Clean Power, said that American companies are making massive investments that are increasing American competitiveness and revitalizing the manufacturing sector. However, he added that a strong, modern, and resilient economy is impossible without a significant improvement in the permitting of new energy infrastructure.
The report is also quick to highlight that the current timeline for a clean energy project to obtain necessary National Environmental Policy Act (NEPA) reviews is 4.5 years. This duration is far too long for these projects to have to wait. Congress needs to reform the permitting process in a way that balances timeliness and thoroughness of environmental reviews.
This report shows that there is momentum building in the clean energy sector in the US. However, the government must act fast to ensure that clean energy projects are not delayed due to permitting issues, as the demand for clean energy is growing every day.
