‘Largest US renewable developer doubts GOP will cut clean energy credits’
TL/DR –
The Inflation Reduction Act, a major climate change law by the Biden administration, has resulted in a boom in US clean energy manufacturing, courtesy of substantial tax credits and incentives. Despite this, the Republican Party has expressed intentions to repeal it, a move that John Ketchum, CEO of NextEra Energy (the largest renewable developer in the US), considers “unlikely.” Ketchum argues that it’s challenging to overturn existing laws, and moreover, the benefits of the Inflation Reduction Act are significantly being felt in Republican states, thus making a repeal detrimental.
NextEra Energy CEO Discusses Political Impact on Renewable Energy
Despite Republican threats to dismantle the Inflation Reduction Act (IRA), NextEra Energy’s CEO, John Ketchum, believes it’s improbable, even if Republicans win the upcoming elections. As the top renewable energy developer in the US, NextEra Energy expects the IRA to continue promoting a clean energy boom.
Renewable Energy Prospects Amid Political Changes
The Inflation Reduction Act, a significant climate change law by the Biden administration, has sparked a clean energy manufacturing surge in the US through tax benefits and incentives. However, Republicans plan to repeal it. Ketchum told Financial Times that tax credit revocations or legal alterations have not occurred despite administration changes in his 21-year tenure at NextEra. He notes the IRA’s benefits largely flow to Republican states, stimulating areas with economic challenges.
NextEra Energy, based in Florida, ranks as the fourth-largest US energy group after ExxonMobil, Chevron, and ConocoPhillips. In 2022 and 2023, it saw record battery and renewable storage orders totaling 17,000 megawatts. If they meet their 2026 targets, they will operate a portfolio of 63 GW, placing them among the top 10 energy producers globally.
Political Climate Impacting Renewable Energy
Ketchum’s statements hold significant value, as NextEra Energy is a renewable powerhouse and possesses Florida’s largest electric utility, a Republican stronghold. Repealing the IRA, which boosts job creation and economic growth in various states, including Texas, South Carolina, and Tennessee, would be counterproductive. However, the future remains uncertain.
If you reside in disaster-prone areas and want to increase home resilience to power outages, consider solar power with a battery storage system. To find a trusted, competitive solar installer near you, try EnergySage. This free service connects you with pre-vetted solar installers who compete for your business, ensuring high-quality solutions at 20-30% savings. Start your journey to solar here.
—
Read More US Economic News