Renewable energy industry in the US ready to branch out

Source: Internet

The renewable energy business in the United States is anticipated to continue to evolve supply chains, as earnings have lately suffered due to logistics-related cost constraints and trade concerns between the United States and China.

Due to supply constraints of components (semiconductors, modules), raw materials (polysilicon, commodities), and manpower, as well as growing transportation costs, the solar energy industry in the United States remained under pressure in 2021, with prices increasing for the first time in seven years.

In 2022, renewable energy developers in the United States will most likely continue to seek alternative suppliers, including domestic manufacturers, when possible, reassess supply demands, and develop replacements to assist alleviate these pressures. In fact, efforts to assist renewable energy supply chains take into account not just the clean energy components but also the raw materials. In order to lessen reliance on foreign markets, developers are also looking into alternative materials and other manufacturing techniques for renewable energy components.

Investors and DOE programs are likely to assist next-generation renewable energy technologies as they progress toward commercialization. The capacity of these technologies to suit multiple use cases, as well as the ease with which they integrate renewables, has increased their attractiveness. As the solar power sector strives to be the market leader in energy resources, it will likely continue to look for new methods to add value, such as increasing the solar-plus-storage market. Simultaneously, state-level expansion of community solar regulations, as well as tests with floating solar PV installations, could pave the way for new solar growth frontiers in the United States.

It will be important to build new interstate transmission lines and increase the utilization of existing lines in order to transport these renewable energy resources to energy customers. These goals have been addressed by FERC, which is backed up by new rules to improve the transmission planning process. The IIJA gives the Federal Energy Regulatory Commission (FERC) more transmission approval authority, similar to the existing standards for natural gas pipelines. This, in combination with investments in technology like dynamic line ratings, can aid in the development of transmission infrastructure.

Significant industry focus on supply chain security is expected to continue as stakeholders consider various alternatives for dealing with recent disruptions, particularly in the solar business. Some developers are likely to use tactics like renegotiating power purchase agreements, while others are waiting to see what happens. The industry’s ambition to improve sustainability by recovering and reusing renewable energy waste is at the other end of the supply chain. This tendency will undoubtedly take up in the future years, creating new prospects for the renewable energy industry, with PV module recycling legislation pending in some jurisdictions.

We will be observing the IIJA’s implementation, which includes investments in wind and solar power, battery, and electric vehicle supply chains, green hydrogen, long-term energy storage, transmission, and other renewable energy-related industries. We will also be closely following the BBB Reconciliation Act, which might help the renewable energy business by extending PTCs and ITCs for wind and solar, as well as expanding tax credits to additional assets including standalone energy storage, transmission, and green hydrogen. As additional money becomes accessible, the transmission process is improved, and new technologies are commercialized, the sector will most certainly benefit.

Source: V-Coating

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