Exploring the IRA: Complexities and Opportunities

TL/DR –

The energy sector is grappling with the first year of the Inflation Reduction Act (IRA), a pivotal legislation aimed at accelerating the energy transition. A discussion on a Moss Adams podcast with Managing Director Matt Kaden revealed the complex challenges and opportunities that the IRA presents for the renewable energy sector, touching on bonus credits, wage compliance, and market trends. The conversation also delved into the impact of additional incentives for using US-made components and developing in energy communities, complexities of ensuring labor requirement compliance, and the evolution of the insurance market and tax credit transferability to support smaller developers.

June 19, 2024 | Energy | Inflation Reduction Act | IRA | Matt Kaden

The energy sector grapples with the new Inflation Reduction Act (IRA), with many stakeholders still unclear about its provisions and requirements. This legislation is crucial for the energy transition, presenting opportunities and risks for developers, investors, and policy-makers.

The IRA’s evolving landscape poses significant questions for energy market participants. How are they adapting, and what uncertainties shape this transition?

In the Moss Adams podcast, hosted by Michelle Dawn Mooney, Matt Kaden, Managing Director at Moss Adams, delved into the IRA, exploring its challenges and opportunities for the renewable energy sector, focusing on bonus credits, wage compliance, and market trends.

The podcast discussion addressed key points such as:

• The effect of additional incentives for using U.S.-made components and developing in energy communities on project valuations and risks.
• The intricate nature of labor requirements compliance and its implications on project financing.
• The evolution of the insurance market and tax credits transferability to assist smaller developers and address uncertainties.

Matt Kaden, with over 15 years of experience advising a wide range of energy market participants, offers notable insight. His work with utilities, infrastructure funds, and investors in the renewable energy and energy transition space informs his viewpoints.

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