The U.S. power sector is undergoing the most significant evolution in its history, but transitioning to clean energy represents only one part of the equation. In a tightening energy landscape, the new Inflation Reduction Act could be a game-changer.
The United States does not have an energy problem, it has an energy security problem. Indeed, while clean energy is frequently — and not undeservedly — in the spotlight, finding a way to firm up renewable generation remains a crucial issue. With this in mind, provisions outlined in the Inflation Reduction Act (IRA) could expedite the move toward energy security as national demand for electricity begins to grow for the first time in decades.
International headwinds raise power prices
Throughout the last 10 years, the United States’ power market growth has been driven by abundant, inexpensive natural gas and the aggressive proliferation of renewables. Natural gas, in particular, has had