Domestic Manufacturing, Energy Equity, Green Hydrogen & Others: 5 Trends to Define US Energy Market in ’23

Deloitte

A report released by Deloitte entitled, ‘2023 Renewable Energy Industry Outlook’ has provided an insight into the trends that will define the US RE market this year.

2022, the report states, the renewable energy growth in the US market saw a slowdown because on increasing costs and delays in project. Some of these trends, the report estimates will carry on this year. It further goes on to define five trends that will define the market this year-

1. The domestic manufacturing will see a push as the ‘rising clean energy component manufacturing could ease supply chain snags over time’. The Inflation Reduction Act incentives have birthed new plant and important investment. This is likely to gather steam in 2023.
2. Decarbonized fuel will also be a trend. Interest has been sparked once again in green hydrogen with the IRA. “The law’s $3 per kilogram tax credit for eligible “clean” hydrogen could make it price-competitive with higher carbon “gray” hydrogen in much of the country.” Lack of infrastructure, however, will continue to be an impediment.
3. Energy equity may come about this year as low-income groups stand to gain with federal policy. This holds equally true for renewable energy developers.
4. Cybersecurity may also witness a rise this year. Utilities and renewable developers are likely to scale up cyber staff to deal with this challenge. This will be crucial to address the gap in qualified cybersecurity talent.
5. Offshore wind is also likely to continue on its growth trajectory. Mid-2022 proved to be fruitful for offshore wind, growing to more than 40 GW in the development pipeline. Another 20 GW of capacity is already in planning stages. This year on is essential to tapping this potential and unlock growth.