In 2021 and 2022, President Biden ushered in a transformative era with the signing of his Investing in America agenda, marking the largest-ever public investment in industries crucial for the long-term economic growth of the United States. This sweeping agenda, embedded in laws like the Bipartisan Infrastructure Law and the Inflation Reduction Act, strategically targets clean energy investments across the supply chain. The outcome is a surge in private sector certainty and unprecedented investment, with provisions of the Inflation Reduction Act extending over a decade.
Recent data underscores the success of the President’s agenda, revealing robust investment in manufacturing facilities and stellar performance in key sectors such as solar and wind energy, grid energy storage, and electric vehicles.
Exceeding Expectations: Construction Boom in Clean Energy Manufacturing Facilities
Private companies have responded dynamically to the Investing in America agenda, announcing over half a trillion dollars in new investment since January 2021. Of this, nearly $360 billion has flowed into clean energy manufacturing, electric vehicles (EVs), batteries, and power generation. The surge in inflation-adjusted spending on manufacturing facility construction, doubling since President Biden took office, indicates that the agenda is catalyzing even more private sector funding than initially projected.
This growth outpaces other forms of construction, with manufacturing construction spending seeing a remarkable 27 percent increase in the first ten months of 2023, compared to a 7 percent growth in other non-residential construction.
Clean Energy Deployment: A Swift Progress Report
The Investing in America agenda’s goal is to escalate clean energy generation from sources like solar and wind, fostering lower energy costs, enhanced resilience, and reduced greenhouse gas emissions. Notable progress has been made in expanding U.S. solar and wind manufacturing capacity. Since the enactment of the Inflation Reduction Act in August 2022, over 100 gigawatts of planned manufacturing capacity have been announced for solar module assembly, equivalent to powering over 10 percent of U.S. homes annually. This surge involves 79 new facilities and/or expansions, backed by over $13 billion in investments.
Projections from the latest Annual Energy Outlook foresee a rapid escalation in solar and wind capacity by 2030. Solar capacity is set to reach 338 gigawatts, almost twice the initial forecast in 2021. Wind energy capacity is expected to hit 300 gigawatts, a 43 percent increase from the 2021 projection.
Grid-Scale Energy Storage and Electric Vehicles: Driving the Revolution
Energy storage, a linchpin for a clean electricity grid, is experiencing historic private deployment thanks to incentives from the President’s agenda. Grid-connected battery energy storage is on track to more than double in just one year, with expectations of another doubling in 2024. Forecasts post the Bipartisan Infrastructure Law and the Inflation Reduction Act predict a remarkable expansion in grid-scale battery storage capacity, surpassing earlier estimates.
The electric vehicle (EV) industry is also flourishing under the agenda’s support. Private sector responses include over $150 billion in announced investments for EV and EV battery manufacturing since 2021. EV sales have soared, exceeding projections. Forecasts for 2026 estimated over one million EVs sold annually, with the 2030 estimate reaching 1.8 million. Remarkably, over one million EVs have already been sold in 2023, surpassing projections by three years.
Clean Energy: A Catalyst for Economic Growth and Wellbeing
The Investing in America agenda is propelling clean energy deployment, positioning the United States to meet ambitious climate goals, enhance energy security, and foster economic growth. Notably, private manufacturing facility construction has contributed significantly to GDP growth, accounting for about 10 percent of the total 3.0 percent real four-quarter growth.
In the long run, investments in clean energy are projected to yield benefits beyond economic growth. A dollar spent on clean energy is expected to generate twice as much output as a dollar spent on fossil fuel energy. Additionally, the production tax credit in the Inflation Reduction Act is forecasted to boost U.S. GDP by lowering electricity costs, indicating more benefits than expected.
Conclusion: The Agenda in Action
President Biden’s Investing in America agenda is proving to be a catalyst for change, generating economic and environmental benefits for the American people. With forecasts indicating accelerated activity, the United States is on a trajectory towards achieving climate goals, ensuring energy security, and fostering robust, stable economic growth. As the agenda continues to unfold, the nation is closer than ever to a clean energy future.