IRA Spurs $150 Billion Investment In Clean Energy

• According to ACP's new report, the US has had announcements made for over $150 billion for clean energy
• It includes 46 manufacturing facilities, including 26 for solar PV, 10 battery storage, 8 wind and 2 offshore wind
• Nearly 96 GW new clean energy capacity has also been announced, as per the report
• ACP demands the US Congress to expedite their clearance by easing permitting processes

Ever since the US President Joe Biden passed the Inflation Reduction Act (IRA) in August 2022, the country has witnessed over $150 billion in capital investment announced for utility scale clean energy projects and manufacturing facilities, including for 26 solar manufacturing facilities, according to American Clean Power Association's (ACP) new report.

These 26 fabs are part of 46 announcements of new, expanded or re-opened utility scale manufacturing facilities. Other investments relate to 10 battery storage, 8 wind and 2 offshore wind manufacturing facilities. All of these will see creation of 18,000 new manufacturing jobs in the country.

For solar, the number can go even higher as some companies have expressed the intent to manufacture in the US but not shared any concrete plans. For instance, ACP says Canadian Solar is likely considering a solar manufacturing fab with up to 5 GW annual capacity. Similarly, SolarEdge too aims to establish US manufacturing capacity for inverters and optimizers in 2023 but is yet to zero in on a site.

Most of these fabs are likely to be located in the states of Alabama, Arizona, Colorado, Georgia, Iowa, Michigan, Minnesota, New Mexico, New York, Ohio, Tennessee and Texas. Some of the announcements do not include locations.

Additionally, the announcements include nearly 96 GW of new clean energy capacity.

Nonetheless, ACP analysts warn that this 'once-in-a-lifetime' opportunity to move to a clean energy future may be lost in the absence of expediting and streamlining permitting process to speedily build out this capacity. "Failure to do so will put 100 GW of clean energy at risk of significant delay, along with 150,000 jobs," they add.

ACP CEO Jason Grumet said, "Now we need Congress to create a permitting system that is equal to the challenge and designed to succeed."

The association has documented these findings in the 2^nd installment of its Clean Energy Investing in America reports, available for free download on its website.

The 1^st installment of the report released in December 2022 counted 22 GW new solar or module manufacturing to have been announced post IRA (see US Attracts $40 Billion Clean Energy Investments In 3 Months).