Domestic Supply Chain Unknowns. Passing the IRA created intentions, rules, guidance and now interpretations. The intention is to make the products that are installed by American workers right here, with many new factories activating to participate in this market. The rules were published by congress and drafted by the agencies that oversee the execution of the law passed by the legislative branch. Now the guidance has come out, meant to create rules of the road so to speak, and enable deployment of billions of capital. However, the interpretations leave some guidance with additional questions that the industry is working through. Part of this is also on the buyers in the industry to choose to go along with a domestic content success, it can’t just be a decision to buy something cheaper made elsewhere. At some point, the market has to decide to make local manufacturing a given, not a choice.
Not Peanuts. Duke’s capital plan includes $65billion of investments in the next 5 years, 80% of which are labeled as low carbon. This isn’t a unique situation, the investments being made by munis, cooperatives, and investor-owned utilities are significant and growing to allow for the grid to become more stable and resilient within the energy transition.
Texas Storage Postcard (From The Future). Texas, with a robust, energy based power market, has been installing storage at quite the pace, especially in the distribution scale because of the quicker permitting process (take note!). As storage has been built in ERCOT, regulators have realized that batteries can do quite a few things that are valuable to maintain grid stability. This realization comes with new services and regulations that storage assets need to conform to, requiring new configurations, upgraded controls package and analytics capabilities. This will be a reality with Federal agencies as well, particularly on industrial controls and cybersecurity protocols. Happy to connect you with folks from our FlexGen team to get more insight on these rather complex and nuanced challenges that the market will maneuver through.
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- Canary Media: Manufacturing vs. deployment – The clean energy tax-credit conundrum
- Reuters: Duke Energy hikes five-year capital plan to $65 bln, focus on low carbon energy
- Bloomberg: Permits for US Energy Projects Are So Bad Unlikely Allies Emerge
- Houston Chronicle: Texas leads way in battery storage growth, adding enough to power 100,000 homes
- Axios: Chevron’s CEO talks renewables, lithium and COP28
- Utility Dive: FERC to oversee settlement talks to resolve PJM Winter Storm Elliott complaints amid $1.8B in charges
- PV-Tech: Ørsted signs PV recycling agreement with Solarcycle for its US module fleet
- Energy Storage News: US energy storage investor Eolian continues to raise funds with US$515 million Green Loan
Opinion
Best, Yann