Keep knowledgeable with free updates
Merely signal as much as the Renewable power myFT Digest — delivered on to your inbox.
The most important US renewables developer has warned President Joe Biden to not impose extra commerce tariffs on Chinese language clear power applied sciences, saying it dangers slowing the inexperienced transition.
Rebecca Kujawa, chief govt of NextEra Vitality Sources, informed the Monetary Occasions that tariffs have been elevating prices for shoppers and making it “more difficult” to perform the nation’s clear power targets.
“It adds to the level of uncertainty,” mentioned Kujawa.
“Any uncertainties in the development process can definitely create higher costs for customers and make it more difficult to get some of the clean energy goals that the Biden administration has over the finish line.”
The assertion from NextEra provides to a refrain of complaints from trade teams and builders, warning new duties will sluggish and improve the price of decarbonisation.
Final month, the Biden administration launched a spherical of tariffs on Chinese language clear applied sciences to guard the nascent US trade after warnings that low cost imports have made it tough for producers to function, even with subsidies from the landmark Inflation Discount Act.
On June 7, the US Worldwide Commerce Fee voted unanimously to proceed investigating a petition filed by a bunch of photo voltaic producers, together with First Photo voltaic and Qcells, calling for anti-dumping duties on Chinese language photo voltaic cell producers in south-east Asia, the place the US sources the majority of its panels.
“Trade relief is vital to the burgeoning growth in the industry. Without it, subject imports will take over the US market,” mentioned Laura El-Sabaawi, a associate at Wiley Rein representing the petitioners at an ITC listening to in Could.
The potential new tariffs have sharply divided the trade between giant home producers, who argue they’re essential to compete with low cost imports from Asia, and operators, who warn tariffs will increase the costs of renewables as a result of restricted home provide.
“If solar is deemed to be a product that has a very uncertain cost, it’s hard for customers to make commitments to utilise that technology,” mentioned Jim Murphy, chief govt of Invenergy, a US renewables developer that produces panels with Chinese language producer Longi in Ohio.
“We don’t have domestic manufacturing here, so why should we be tariffing the imports?”
The tariffs splitting the clear power trade underscore the tough balancing act going through the Biden administration because it vies to inexperienced the world’s largest economic system whereas constructing out a provide chain for clear applied sciences, the majority of which is produced in China.
“There is a natural tension between China policy and climate policy at this point in the US,” mentioned Herbert Crowther, an analyst at Eurasia Group, including that tariffs would lead to “slower, short-term deployment” till a home trade was developed.
“In the US political context, ultimately, China policy sells much more than climate policy.”
Expectations of hovering energy demand from knowledge centres for synthetic intelligence and manufacturing have added stress on the US grid to decarbonise. The US put in 5.6GW of latest photo voltaic, wind and battery programs within the first quarter of 2024, up 28 per cent from the identical interval final 12 months, in accordance with the American Clear Energy Affiliation.
The White Home has set a goal of 80 per cent renewable power technology by the tip of the last decade and 100 per cent by 2035, in contrast with simply over 20 per cent final 12 months.
Kujawa additionally warned lawmakers towards the politicisation of fresh power, highlighting its position in financial improvement. Headquartered in Juno Seashore, Florida, NextEra has reworked right into a renewables behemoth over the previous decade in a Republican-governed state that has rallied towards prioritising local weather change mitigation. Earlier this week, NextEra introduced it could double its current renewables capability by 2027, deploying 37GW-47GW.
“Renewables have spurred economic development in local communities,” mentioned Kujawa. “If we don’t feed into the politicisation, the reality of the real economic development, the real value to customers is able to shine through.”
Local weather Capital
The place local weather change meets enterprise, markets and politics. Discover the FT’s protection right here.
Are you interested in the FT’s environmental sustainability commitments? Discover out extra about our science-based targets right here
