President Biden has signed a $430 billion economic and energy bill – an omnibus spending bill that seeks to address climate change, inflation and Medicare costs while allocating billions to cut carbon emissions and incenting clean energy production and development.
In a big victory for the Biden Administration, The Inflation Reduction Act of 2022 quickly gathered momentum in Congress in late July after Sens. Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ) – two holdouts that opposed Biden’s original climate bill – agreed to lend their support.
The legislation – which aims to cut emissions 40% by 2030 – contains $369 billion in climate and energy provisions, devoting nearly $280 billion to clean energy tax incentives.
Generally speaking, renewables in the US are facing pressure from rising supply chain costs, global supply chain disruptions and spiking commodity costs. The IRA will stimulate green technologies and ramp up domestic supply chains, creating favorable conditions for US offshore wind.
The act extends and expands several new clean energy tax credits, such as the Investment Tax Credit (ITC), Production Tax Credit (PTC) and Advanced Manufacturing Production Credit. Such long-term extensions are crucial for developers and suppliers to plan future projects without the fear of tax incentives expiring.
Perhaps the most impactful measure for offshore wind is an extension of an existing ITC, which was set to expire in 2025. The bill allows for the 30% ITC available to projects placed in service after 2024. Notably, the ITC and PTC would phase out when emission reductions meet target levels of 25% of 2022 levels or after 2032, whichever is later.
“The Inflation Reduction Act provides certainty for clean energy as this legislation breaks the ‘on-again off-again’ policy cycle,” notes Doug Pfeister, Managing Director of The Renewables Consulting Group, an ERM Group company. “This game-changing legislation will set-up US offshore wind for years to come and go a long way in helping President Biden achieve his stated target of 30 GW of US offshore wind by 2030.”
A long-term extension should also help to alleviate wind developer concerns about the rising cost of raw materials. Projects meeting certain domestic content requirements are eligible for a bonus credit. The act supplements the offshore wind supply chain with a broad array of supportive tax measures, such as extra deductions for US-made content like offshore wind shipbuilding but also for production costs of critical minerals, nacelles, tower foundations, inverters, batteries, and other components in the offshore wind supply chain.
The Act also opens up wide swaths of seabed available for future leasing opportunities. For starters, the IRA will resume offshore wind leasing off the southeast seaboard, reversing a 2020 executive order issued under President Trump. The IRA also directs the Bureau of Ocean Energy Management to issue Calls for Information before September 2025 for offshore wind areas within the exclusive economic zone adjacent to US Territories such as Puerto Rico, Guam, American Samoa, the US Virgin Islands and the Northern Mariana Islands.
For the first time, the act includes significant new incentives for clean hydrogen production, such as a Clean Hydrogen PTC/ITC. The bill provides a separate credit stream for integrated hydrogen projects and is available during the first 10 years of facility operation provided projects begin construction before 2033.
Jesse Broehl is a Principal in RCG’s New York Office. He has over a decade of experience as a research analyst, consultant and wind energy subject matter expert journalist covering renewable energy. Mr. Broehl uniquely blends technical and industry knowledge on the US renewable energy market with years of writing and market report authorship experience.
Mr. Broehl is an experienced renewables analyst and has lead authorship on multiple technical and market intelligence reports. His experience includes over a decade focusing analyses on wind energy primarily, and solar and energy storage secondarily. As a skilled writer and industry analyst, Mr. Broehl is familiar with all aspects of the renewables market both domestically in the US and globally, and excels in market insights and strategy. He has served clients from across the industry, including wind turbine OEM companies, private equity companies, oil companies, and others.
Mr Broehl joins RCG from the leading US trade group for renewables, where he was a key member in renewable energy market, policy, and technology trend research and analyses. As a research analyst and consultant at an energy consultancy, Mr Broehl managed the firm’s global wind energy market analysis, competitive assessments, product and supply chain analysis, market forecasts and emerging technologies and strategies. In this role he was also the lead author on multiple annual reports and data products. Mr. Broehl has a degree in journalism and multiple lead authorship credits to his name.
London, United Kingdom – The world’s largest pure-play sustainability advisory firm, ERM, announces the acquisition of RCG (The Renewables Consulting Group) – a global market intelligence, management consulting, and technical advisory firm operating exclusively in the renewable energy sector.
The acquisition expands ERM’s capabilities to support clients across the entire lifecycle of large-scale renewable energy projects, from market intelligence and strategy development through to the development, construction, operations, and decommissioning of projects. It further strengthens the firm’s ability to advise clients on the purchase and sale of renewable energy assets, and adds deep sector experience in offshore wind projects.
The team of RCG grows ERM’s +5,500-strong firm by approximately 60 experts, based in Europe, the Americas and Asia-Pacific. RCG’s leadership team joins the ERM partnership.
ERM continues to expand and diversify its market presence through acquisitions. The deal marks ERM’s sixth acquisition announced in 2021, including related acquisitions in next-generation low-carbon technology advisory, and renewables consulting.
Keryn James, CEO, ERM said: “Our purpose is to shape a sustainable future with the world’s leading organizations. Navigating the new opportunities presented by renewables and low-carbon technologies is central to this ambition. With the acquisition of RCG, we are in an even stronger position to help our clients unlock the enormous potential of the clean energy revolution. We warmly welcome the talented RCG team to the ERM Group.”
Sebastian Chivers, CEO, RCG said: “From the outset, our vision for RCG has focused on building the most respected firm in renewable energy consulting, globally. Becoming part of the ERM Group will help us accelerate that vision and become a global leader for our clients in the energy transition. The backing of ERM will allow us to take the business to the next level.”
Lee Clarke, COO, RCG said: “We already have a track record of successfully collaborating closely with ERM across global markets and have shared values and ways of working. Operating together as a single team unlocks competitive advantage for clients throughout the project lifecycle.”
Glasgow, Scotland – The Renewables Consulting Group, a sector specific advisory firm, has appointed Katrine Black as Senior Associate in RCG’s Glasgow office.
With increased demand for market and transaction advisory services, RCG has responded by bolstering its technical advisory team.
Before arriving at RCG, Black led technical due diligence assignments in offshore and onshore wind, on projects spanning development, construction and operational phases. This included a key role in the acquisition of a stake in Dogger Bank Offshore Wind Farm and debt financing of onshore wind portfolios.
Commenting on the appointment, Nicholas Morgan, Associate Director in RCG’s Glasgow office, said:
“We are delighted that Katrine has joined the RCG team at what is an extremely exciting time for the renewables industry. Our Glasgow team has grown strongly over recent years, throughout the COVID-19 pandemic, to meet our client’s needs in a thriving renewables industry. With experience in onshore and offshore wind, working on behalf of owners, investors and lenders, Katrine’s appointment compliments RCG’s world leading technical advisory team. Her broad skillset and project management capabilities will bring great benefit to our clients across the globe.” – Nicholas Morgan, Associate Director
The Glasgow office is leading the acceleration of the firm’s due diligence platform and technical services in order to realise its overall goal of providing a top-tier market intelligence, management consulting, and technical advisory service to the renewable energy sector and delivering long-term value for clients.
日本、東京都 – 2021年6月2日 ‐再生可能エネルギー分野に特化したアドバイザリーファームであるThe Renewables Consulting Group（RCG）は、再生可能エネルギー分野のベテランである坂内真人を当社の東京オフィスのディレクターに任命しました。
Tokyo, Japan – The Renewables Consulting Group (RCG), a sector specialist advisory firm, has appointed renewable energy veteran Masato Bannai as a Director in the company’s Tokyo office.
Mr Bannai is a highly-respected professional with more than 25 years’ experience working across a broad range of technologies, such as offshore wind, solar PV and terrestrial wind.
Bannai’s appointment coincides with the expected growth of Japan’s burgeoning offshore wind market. Japan’s Ministry of Economy, Trade, and Industry is expected to announce an official public auction for a Round 1 auction in support the country’s interim target of 10 GW by 2030 and 45 GW by 2040.
Just last year, Japan set new feed-in tariff rates for offshore wind that will result in large-scale offshore wind development at multiple sites during the next decade.
Commenting on the news, Gareth Lewis, RCG’s Managing Director for Asia Pacific (APAC) said:
“We see the Japan offshore wind market continue to blossom with more prefectures being recognised as excellent sites for development. Local utilities and trading houses, emerging IPPs and international developers are preparing themselves for upcoming auctions to secure seabed concessions and subsequent rights to develop multi gigawatt offshore wind sites. This has resulted in a greater need for specialist expert services.
Bannai-san brings a wealth of experience in operations, engineering, procurement and construction (EPC), account management and project management as well as experience in the UK offshore wind market and power markets in South Korea and Columbia.
With Bannai on board, and the fact that we are already providing advisory services for numerous Japanese offshore wind projects, I foresee further acceleration of our impact on the Japan’s renewables market.” – Gareth Lewis, Managing Director APAC.
Before joining RCG, Mr Bannai most recently served with Sonnedix Japan overseeing EPC and operations and maintenance for several solar projects, including claim settlement. Before Sonnedix, Bannai was General Manager for Marubeni Power Systems Corp., a division of Marubeni Group, where he managed the execution of engineering, procurement and construction contracts for several offshore and onshore wind projects located in Europe and Asia.
RCG’s continued growth means the firm can deploy experienced local teams on any renewable energy engagement, backed up by a team of international experts, to deliver high-value market intelligence, management consulting and technical advisory services on any renewable energy assignment in the Asia-Pacific region.