America’s clean energy manufacturing sector has made great strides thanks to industrial policy, but competitors are following suit.
The European Union announced total subsidies on Monday as it sets its sights on building a stronger and more complete clean energy supply chain. Approximately 5 billion dollars. Although allies, European investment in this important sector confirms the need for continued focused investment in clean energy production in the United States.
Despite this new attention from the EU and US, China’s lead in the clean technology race is firmly established. the The world’s largest manufacturer and exporter It is no surprise that the dominance of solar panels, lithium batteries, and electric vehicles is perceived as a threat.
especially, bloomberg According to the report, the European Commission “will support bids that require fewer cathodes, anodes and active materials from China.” Transfer of know-how will also be required. New patents resulting from winning projects must be registered in EU member states. ”
Meanwhile, importers are sounding the alarm over increased tariffs on solar power products made in China. America’s transition to clean energy may be delayed. This warning is deeply Out of place. Against enormous odds, the U.S. solar manufacturing industry has bounced back, overcoming China’s overcapacity. flooded the market in the late 2000s It also forced many American manufacturers out of business. It’s a comeback made possible by the Inflation Control Act of 2022 (IRA).
Reuters Report:
New tax credits for manufacturing facilities introduced in the inflation law more than quintupled U.S. solar module production capacity to 45 GW by October, according to analysts at S&P Global. According to the American Clean Power (ACP) Association, there are currently more than 95 utility-scale solar manufacturing facilities in the United States, with nearly 100 new or expanded facilities announced for 2022 and beyond. In September, First Solar opened a 3.5GW/year panel manufacturing plant in Alabama, bringing domestic manufacturing capacity to 11GW/year. ”
a new report According to a study by the Solar Energy Industry Association, the total annual output of solar power plants in the United States has reached almost 40 GW, which is almost enough to meet all domestic demand.
in E&E News Coverage In the report, Wood Mackenzie Principal Analyst Silvia Revia Martinez, one of the authors, highlighted the IRA’s role in restoring America’s solar manufacturing capacity.
“Total manufacturing capacity has increased significantly,” Martinez said. “More production capacity is under construction and more announcements are being made for 2025.”
The IRA’s efforts are still underway, and the U.S. clean energy supply chain will continue to grow in the coming months. In other words, if we maintain the legal incentives and protect the U.S. market from negative impacts, Wave of excess capacity in China This threatens to wipe out solar factories and other major clean energy producers once again.
