L R AS Published on Saturday 18 September 2021 - n° 374 - Categories:US policy
Stimulation by the US administration to install RE
The US House of Representatives Committee on Energy and Commerce has included a $150 billion Clean Energy Performance Program (CEPP) in its $3.5 trillion budget reconciliation package. It includes
to penalise or support electricity companies according to the amount of renewable energy they produce.
The scheme will pay or penalise electricity suppliers according to the amount of clean energy they supply to their customers over the period 2023 to 2030. Suppliers are incentivised to increase their supply of renewable energy by 4% compared to the previous year. They will then receive a subsidy of $150 for each MWh above the previous year's clean energy target plus 1.5%. However, these subsidies must be used for the benefit of customers "including direct billing assistance, clean electricity investments, energy efficiency investments."
Conversely, suppliers who do not increase the renewables in their mix by at least 4% each year will have to pay the Department of Energy the shortfall. For example, if the supplier only increases its renewables by 2%, it will have to pay $40 for each MWh not produced for the missing 2%.
The plan provides for :
2.5 billion dollars ($bn) to install solar systems in low-income areas;
13.5 billion in electric vehicle infrastructure;
5 billion to help replace some heavy vehicles with zero-emission vehicles.
9 billion to create a 21st century energy grid,
17.5 billion to decarbonise federal buildings and fleets;
18 billion for energy efficiency in homes;
27.5 billion for a fund to reduce greenhouse gases through "rapid deployment of low- and zero-emission technologies".
PV Tech of 14 September 2021
Editor's note: This incentive system for bringing renewables into the energy landscape is effective because there is not only the incentive, but also the penalty
