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In today’s edition:

• 🔥 Republican states are dominating clean energy manufacturing

• ⚡️ A $1b solar manufacturing plant is on its way to New Mexico

• 👀 A surprising amount of people don’t know about IRA tax benefits

Read time: 5 minutes

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BIG STORY

Republican states are dominating the clean energy boom

Driving the news: Georgia is emerging as a major hub for clean energy jobs. Since the Inflation Reduction Act's passage, clean energy companies have unveiled nearly 20 significant new projects in the state, amounting to over $12 billion.

What's happening: The southeastern U.S. now termed the “battery belt,” is rapidly emerging as a major hub for battery manufacturing. States like Kentucky, Tennessee, South Carolina, and Georgia are predicted to witness the most production capacity growth by the end of this decade.

• Georgia has witnessed the construction of a multibillion-dollar EV factory west of Savannah, plus a $2.5 billion battery factory near Atlanta is in the works.

• This surge is attributed to the region's strategic location near ports, transportation routes, utility connections, and other favorable factors.

Why it matters: Georgia's clean energy economy was already on an upward trajectory before the Inflation Reduction Act, despite the state’s governor’s hesitancy to recognize climate change.

• State and local leaders have been proactive in attracting solar, battery, and EV companies to establish factories and generate new employment opportunities.

• The Inflation Reduction Act further accelerated these investments, with the law providing stable clean energy tax credits for a decade.

• Other GOP-led states like South Carolina and North Carolina are also seeing a surge in clean energy investments.

What's next: The overarching sentiment is that the U.S. is becoming an attractive destination for clean energy investments, presenting states and metropolitan areas with a golden opportunity to compete and thrive. But there’s still a major labor shortage.

• The mismatch between skills acquired through conventional training and those required on the job is a significant challenge.

• The involvement of educational institutions is also pivotal. For instance, Freyr Battery chose Georgia for its U.S. gigafactory due to the state's proximity to renowned universities and technical colleges.

🌶 Hot take: Culture wars grab the headlines, but the reality is that renewable energy and electrification are attractive regardless of your political beliefs. Whether your elected officials tout environmental impact or jobs the result is the same: decarbonization.

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HOT TOPICS

1. 🔆 Community solar: The rise of community solar projects, supported by federal and state incentives, challenges utilities like Xcel. Determining the impact on reliability and costs is a concern, while tax credits offer opportunities for low-income customers.

2. 😎 Solar manufacturing: Maxeon Solar Technologies plans to establish a $1 billion solar manufacturing facility in Albuquerque, New Mexico, marking its first factory in the U.S. The facility will become one of the largest domestic solar manufacturing expansions since the Inflation Reduction Act was passed.

3. ⚡️ Energy pricing: The declining trend of renewable power prices has halted, leading to increased costs for green electricity. Factors such as procurement difficulties, rising costs of solar components, and high-interest rates have contributed to the price increase (or lack of price decrease)

4. 🇨🇳 China nuclear: China is set to have the world's largest nuclear fleet by 2030, with 57GW of installed capacity as of June 2023. Its rapid growth has already made it the second-largest producer behind the US.

5. 💰 Flood risk analytics: Divirod secures $3.6M in bridge funding led by GHD, Thin Line Capital, and TDK Ventures. Their real-time flood management and water risk analytics offer crucial advantages for companies, insurers, and governments to handle water-related risks and emergencies.

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TODAY’S DATA

71%

71% of Americans are unaware of the Inflation Reduction Act's clean energy and EV rebates and tax credits, according to a recent poll. The Act aims to reduce emissions and offers incentives to purchase EVs, appliances, and heat pumps.

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