L R AS Published on Monday 13 December 2021 - n° 386 - Categories:US policy
A fabulous gift for US RE: the Build Back Better project
The Build Back Better project would disrupt competition in the US renewable energy and gas sectors. It would reduce
wind and solar costs well below electricity prices, according to BloombergNEF.
The approval by the House of Representatives marks a major victory for the US renewable energy sector. It provides unprecedented support for developers of wind, solar and energy storage projects. Most importantly, the bill is expected to change the competitive landscape between renewable energy and natural gas-fired power projects.
The Build Back Better bill extends and expands the current investment tax credit. It would remain in effect for an additional ten years, followed by a phase-out.
With this project, the smoothed cost of energy, or LCOE, for new wind turbines would be 30% lower than what would have been expected by 2030. The new solar projects Americans would benefit from a reduction in LCOE of almost half by 2030 compared to the status quo, thanks to particularly generous technology support under Build Back Better. A typical storage project typical standalone would see its LCOE fall by 15%.
BloombergNEF of 30 November 2021
Editor's note: If BloombergNEF had not put forward such cost reduction figures for solar and wind power, the value of this bill would not have been realized. It is not so much the cost reduction that is important as the resulting reduction in the cost of energy. The economy of a country is based on the cost of energy, which affects all sectors of activity and even household expenditure. If the price of a kilowatt hour falls significantly over the next few years, American competitiveness will be boosted and even dominated.
Well done
