Emmanuel Martin-Lauzer is the director of business development and public affairs at Nexans.
The jury is still out of whether the inflation reduction law (anger) has helped to contain or reduce inflation. However, some provisions have provided tangible benefits that deserve a narrower exam before any possible repeal. Although some provisions may not be widely attractive, an IRA success has been its impact on strengthening Energy Production of the United States. The bill speaks more about renewable energy innovation and an increase in energy independence to support the economic growth of the United States than to lead the economic impact. Eliminate it wholesale rises much more than we could foresee.
In its central nucleus, IRA tax credits for energy generation promote a significant investment in innovative energy production. Because renewable energy is composed 21.4% Of the mix of energy, these incentives have been transmitted chain To the benefits of paymentAt the same time it maintains the creation of whole industries. These investments have caused construction and manufacturing work in both red and blue states, showing that clean energy is not only an environmental initiative.
These tax credits have also strengthened the energy independence of the United States. Renewables such as Solar, Onshore Wind and Offshore Wind are integral to our domestic energy supply chain, reducing confidence in foreign sources and making our own infrastructure more resistant. They have also promoted initiatives to improve long -term cost competitiveness, encouraging developers to innovate to reduce costs.
Our Current network infrastructure and energy generation systems are close to obsolescence And over the next decade, the demand for these systems is expected to shoot. Data centers are expected to double their electricity demand, and by 2035 more than 71 million electric vehicles will require that about 400 kWh be charged per month. The urbanization trends are composed of this demand as more people move to the cities.
Without the fiscal credits of IRA, we risk slowing our ability to develop more energy generation, increasing the risk of extinguishing and higher energy costs for the average pay, increasing our dependence on foreign sources of energy. Current decisions do not affect current costs, affect tomorrow’s ability to grow our economy.
Tax credits are not a new concept: they have been a bipartisan policy tool used for decades to support emerging technologies. From artificial intelligence and quantum computer science, to biotechnology, to government investments that lead technologies such as GPS and Internet, these investments have repeatedly proved their value. Renewable energy is no exception.
Since promulgating anger, the renewable energy industry has created thousands of jobs and has established numerous national manufacturing plants in the United States soil driven by these national offer credit incentives. Manufacturing is also not the only business that gets these benefits. These credits have helped to support the best paid jobs in specialized professions such as those in the maritime industry for wind or wind positions.
Energy diversity is not just a good economy, it is a good security policy. With a diverse mix of energy sources (nuclear, fuel -based, hydroelectric, renewable), we reduce the risk of monopolies that increase costs, as seen with the standard monopoly of oil in the early 20th. Century. Competition forces developers to reduce costs, promoting the cost of energy down. In addition, energy must come from somewhere and the question is not about the current costs of renewable energy, but the future cost of energy in general for consumers without renewable in the combination of energy of the future. There is nothing more harmful than the energy you need but you can’t find.
From a national security perspective, energy diversification reflects a solid investment portfolio. Just as various assets protect against the volatility of the market, multiple energy sources safeguard against physical and cyber -threats. If a source is cut, others can fill the void, guaranteeing a stable energy supply and reducing our confidence in adversary nations by critical resources. Not only are we more confident in the attack, but we are also responsible for our own generation. This helps reduce costs, but it also prevents us from seeing us in other countries, especially our adversaries, for tangential energy and resources like rare minerals.
Although there is certainly valid criticism of the anger and the potential benefits of reviewing the pieces of legislation, the complete repeal of the mininarity of significant advances in net energy innovation, economic growth and national security. IRA’s tax credits and investments have won tangible benefits that extend beyond inflation, and policymakers should carefully step on before dismantling them.
