OBBBA threatens US renewable energy initiatives ahead of 2027 deadline

In the United States, the recently enacted OBBBA has instigated significant uncertainties regarding the energy outlook. Given the dramatic uncertainty surrounding new power supply investments, thermal retirements are likely to be deferred, leading to rising power prices and delays in large energy loads, according to David Brown, director of energy transition research for Wood Mackenzie. Under this legislation, new wind and solar projects must be operational by December 31, 2027, to qualify for full federal tax credits; while projects under construction within a year of its enactment will still have some eligibility. This new requirement may lead to an estimated 17% decrease in solar installations and a 20% drop in wind projects over the next decade, as stated in Wood Mackenzie's report. Additionally, Tesla owners are facing new risks associated with the company's robotaxi service promoted by Elon Musk. Those who wish to rent their vehicles through the service may grapple with potential liabilities in the event of accidents involving their cars, suggesting that legal ramifications may fall onto the owners as well. This aspect of the initiative raises concerns about the financial motivations behind Tesla's push for the robotaxi technology, especially as the company experiences stagnation in its electric vehicle sales. In another industry-related development, the survival of federal hydrogen tax credits, particularly the 45V federal credit, seemed uncertain within the context of Trump's budget bill but ultimately remained intact. This decision indicates a surprising level of confidence in the hydrogen industry, giving it the potential to capture a share of the expected global market. This situation has provided companies in the sector with an opportunity to advocate for their interests before Congress and showcase the viability of hydrogen technology moving forward. As companies like Electric Hydrogen continue to build capacity and engage with customers, the importance of regulatory certainty becomes evident. Projects like Infinium will provide necessary testing grounds for technologies required for scaling. Industry stakeholders have been delayed in proving the capabilities of hydrogen technology, but newfound stability in regulations could signal a positive shift for these initiatives over the next few years.