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Jharkhand Commission Issues Draft Regulations to Determine Solar Tariffs

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Madhya Pradesh Emerges as a Key Market for Solar Open Access

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					</table><a href="https://www.house.gov/" target="_blank" rel="noopener">U.S. lawmakers</a> have voted to overturn President Joe Biden&#8217;s <a href="https://www.mercomindia.com/president-biden-waives-duties-solar-module-imports" target="_blank" rel="noopener">decision</a> to suspend tariffs on solar panels from Cambodia, Malaysia, Thailand, and Vietnam, countries that together provide most of the panels used in the United States.
However, the White House has announced that Biden will veto congressional attempts to overturn his decision to waive solar import tariffs for the four Southeast Asian nations, Reuters reported.
The White House suspended the tariffs last year to exempt solar panel imports from those countries from tariffs for a two-year duration, using the Defense Production Act to enhance domestic solar panel manufacturing.
The move was aimed at hastening U.S.’s clean energy development to ensure that the domestic solar industry has access to a sufficient supply of the components, which is essential in the fight against climate change.
In a bipartisan move, the Ways and Means Committee of the House of Representatives had recently <a href="https://www.mercomindia.com/us-vote-repeal-tariff-suspension-solar-imports" target="_blank" rel="noopener">decided</a> to vote against the suspension of solar import tariffs. “China is obviously circumventing American tariffs designed to ensure a level playing field for American workers,” it had said.
The CEO of the Solar Energy Industries Association (<a href="https://www.seia.org/" target="_blank" rel="noopener">SEIA</a>), Abigail Ross Hopper, expressed disappointment that the lawmakers had voted in favor of imposing retroactive tariffs on solar panel imports, which she believes will cause 30,000 people to lose their jobs this year and hinder the country&#8217;s progress towards its clean energy goals.
Hopper argued that the U.S. cannot currently produce enough solar panels to meet demand and that the moratorium on tariffs provides a strategic bridge to enable the country to establish domestic manufacturing capacity.
The waiver was introduced to create a “bridge” while US manufacturing ramps up enough to supply domestic projects required to achieve climate change goals, with those four countries currently accounting for 80% of U.S. panel supplies.
Domestic manufacturers argue that the tariffs are needed now to compete with cheaper panels made overseas.
However, the White House opposed the move, claiming that it would harm the country’s energy security and undermine its progress toward addressing the climate crisis.
The White House stated it believes the policy has been successful, pointing to the increase in domestic solar manufacturing capacity since Biden came into office.
The news agency reported that Biden is not planning to extend the tariff waivers after the denoted two-year period because of the increase in domestic manufacturing capacity.

US Congress Overturns Solar Panel Import Tariff Waiver, Biden Says Will Veto

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					</table>Overall solar installations across all market segments in the United States are likely to triple in size, increasing from 129 GW to 336 GW in the next five years, a report by the Solar Energy Industries Association (<a href="https://www.seia.org/" target="_blank" rel="noopener">SEIA</a>) and <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a> has said.
The Inflation Reduction Act (IRA) will help the United States solar market grow 40% or 62 GW of additional capacity over baseline projections through 2027, according to the report.
According to the U.S. Solar Market Insight Q3 2022 report jointly released by SEIA and Wood Mackenzie, despite supply challenges slowing the market, solar accounted for 39% of all new electric generating capacity additions during the first half of 2022.
The IRA would <a href="https://mercomindia.com/inflation-reduction-act-faster-transition-clean-energy-u-s/" target="_blank" rel="noopener">deliver</a> billions of dollars in taxes and other incentives to U.S. solar manufacturers. It will equip them with government support to compete with Chinese and Canadian solar energy products.
The country’s solar market alone represents around 4.5% of America’s electricity mix. The report highlights that the developments in the utility-scale sector will lead to the solar sector’s growth until 2027 with 162 GW of new capacity additions.
In the second quarter (Q2) of 2022, the U.S. installed 4.6 GW of solar capacity, down year-over-year by 12% and up 12% from Q1 2022. Installations would have been higher if not for supply chain constraints and the uncertainty of the anticircumvention <a href="https://mercomindia.com/us-probe-solar-module-imports-southeast-asia/" target="_blank" rel="noopener">probe</a>.
The report highlights that IRA will pave the way for more provisions that would benefit the U.S. <a href="https://mercomindia.com/us-installed-3-9-gw-solar-capacity-q1-2022/" target="_blank" rel="noopener">solar sector</a>. Implementing the Act will help establish standalone storage ITC, providing more options to finance and <a href="https://mercomindia.com/us-added-955-mw-energy-storage-installations/" target="_blank" rel="noopener">deploy</a> storage and helping support a grid with more variable generation.
IRA will also help bring in tax credits and incentives for several zero or low-carbon technologies that will accelerate electrification and help the country meet its carbon footprint. Electric vehicles would be able to avail of expanded tax credits, ultimately boosting the electrification of the transport sector.
SEIA President and CEO Abigail Ross Hopper observed, “This report provides an early look at how the IRA is going to transform America’s energy economy, and the forecasts show a wave of clean energy and manufacturing investments that will uplift communities nationwide. With this incredible opportunity comes a responsibility to clearly address concerns over forced labor and ensure that we have ethical supply chains throughout the world.”
Despite a rosy outlook for the next five years, solar installation forecasts for 2022 dropped to 15.7 GW, the market’s lowest total since 2019, due primarily to a Commerce Department tariff investigation.
With the enforcement of UFLPA, several Tier 1 modules remain detained. The U.S. solar industry had expected that UFLPA would require certain documentation under the Withhold Release Order (WRO).
However, unlike in WRO, Customs and Border Protection has been seeking sourcing documentation for the quartzite that is processed into polysilicon for solar modules, which needs documenting the sources of metallurgical grade silicon. Utility-scale projects that need large shipments of modules are the most impacted as developers are pessimistic about procuring modules for the remaining year.
Meanwhile, the industry awaits clarity on the exact requirements once CBP releases the first shipments, which, per the report, can happen soon as a few manufacturers have started filing admissibility packages with CBP.
In June, the White House <a href="https://mercomindia.com/president-biden-waives-duties-solar-module-imports/" target="_blank" rel="noopener">waived</a> new tariffs on solar imports from Southeast Asian countries for two years, providing some relief to the market. However, the report finds that the Uyghur Forced Labor Prevention Act (UFLPA) that took effect in June 2021 could limit solar deployments through 2023.
Principal analyst at Wood Mackenzie and lead author of the report Michelle Davis asserted, “The Inflation Reduction Act has given the solar industry the most long-term certainty it has ever had. Ten years of investment tax credits stand in stark contrast to the one-, two-, or five-year extensions that the industry has experienced in the last decade. It’s not an overstatement to say that the IRA will lead to a new era for the U.S. solar industry.”
The U.S. residential solar segment set a record for the fifth consecutive quarter, with around 180,000 American households installing solar in Q2. According to the report, the IRA is set to drive an additional 7.3 GW of residential solar capacity until 2027. The new standalone storage tax credit across all market segments is expected to improve grid reliability.

Inflation Reduction Act to Help US Solar Installations to Triple by 2027: Report

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					</table>The U.S. Department of Energy (<a href="https://www.energy.gov/" target="_blank" rel="noopener">DOE</a>) has launched two new program offices – the Grid Deployment Office and the Office of State and Community Energy Programs – which together will drive more than $23 billion in investments to expand the capacity of the power grid and deploy cheaper, cleaner energy.
The two offices will be administered through DOE’s Office of the Under Secretary for Infrastructure, with funding from President Joe Biden’s Bipartisan Law Infrastructure.
Both the offices will actively engage in dialogue with environmental justice groups, labor, and communities to help shape program development and execution.
As per the independent estimates projected by the DOE, America’s current power transmission systems would need to expand by 60% by 2030 and may need to triple by 2050 to meet the growing electricity needs of all communities.
The <a href="https://www.energy.gov/gdo/grid-deployment-office" target="_blank" rel="noopener">Grid Deployment Office</a> will improve power delivery and reliability while modernizing and upgrading the power grid and critical electricity-generating facilities. The office will invest $17 billion in programs and projects to collaborate with community and industry stakeholders.
The collaboration will identify and address the country’s transmission, distribution, and clean generation needs. The Grid Deployment Office would also initiate measures to save nuclear power plants from retiring, which provide the nation’s biggest share of carbon-free electricity. The office will also work to support the upgradation of the hydropower facilities.
The <a href="https://www.energy.gov/scep/office-state-and-community-energy-programs" target="_blank" rel="noopener">Office of State and Community Energy Programs</a> will work to increase the pace of deploying clean energy technologies to mitigate energy costs for households and businesses while creating high-quality jobs and bolstering economic development locally.
Under the program, DOE has announced around $6 billion in grants for states, tribal nations, territories, local governments, school districts, and non-profits, aiming to invest in projects that would increase access to clean energy for low-income households, businesses, and communities.
$675 million Critical Materials Program
The U.S. government recently issued a Request for Information (RfI) on developing and implementing a $675 million Critical Materials Research, Development, Demonstration, and Commercialization program funded under the Bipartisan Infrastructure Law. The last date to submit the feedback for the RfI is September 9, 2022.
The program will address vulnerabilities in the domestic materials supply chain as many critical materials like lithium, nickel, and cobalt are required to manufacture clean energy technologies, including solar panels, batteries, electric vehicles, and wind turbines.
DOE’s Critical Materials Program is being expanded by the Bipartisan Infrastructure Law to develop materials, components, and technologies and promote efficient production and use while ensuring a long-term, diverse, secure, and sustainable supply of materials in demand.
The program aims to encourage <a href="https://mercomindia.com/reusing-discarded-materials-circular-economy-energy-storage-sector/" target="_blank" rel="noopener">circular economy</a> approaches to limit and reuse materials that go into diverse photovoltaics and lithium-ion battery designs.
DOE’s $675 million program targets increased domestic raw-materials production and manufacturing capacity, aiming reduced dependence on foreign sources, secure America’s clean energy supply chain, and introduce more jobs associated with the clean energy transition.
The global <a href="https://mercomindia.com/ev-battery-supply-chains-stressed/" target="_blank" rel="noopener">demand</a> for critical materials is likely to surge by 400-600% in the decades ahead. The requirement for lithium and graphite used in EV batteries is expected to rise by 4,000%.

US to Invest $23 Billion for Clean Energy Deployment, Launches Two New Programs

In a bid to expand and strengthen power transmission lines across the country, the United States Department of Energy (<a href="https://www.energy.gov/" target="_blank" rel="noopener">DOE</a>) recently issued a Request for Information (RFI) to collect public input on the structure of the $2.5 billion Transmission Facilitation Program (TFP).
The program is focused on achieving President Biden&#8217;s goal of establishing a national grid that runs on 100% clean electricity by 2035.
An innovative revolving fund program, TFP, was created under President Joe Biden&#8217;s Bipartisan Infrastructure Law. The program is one of the first down payments on over $20 billion of investments under the DOE&#8217;s <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/27/fact-sheet-biden-administration-advances-expansion-modernization-of-the-electric-grid/" target="_blank" rel="noopener">Building a Better Grid Initiative</a> announced last April.
Under the program, large-scale new power lines will receive financial support from the federal government. The existing transmission lines and microgrid connections in select states and territories of the U.S. will be upgraded. The financial support will also help make the grid stronger to resist fluctuating climate changes.
The TFP program would allow the DOE to avail of a loan of up to $2.5 billion to develop and upgrade new high-capacity transmission lines. The DOE will participate in public-private partnerships, undertake capacity contracts with eligible projects and serve as an &#8220;anchor customer.&#8221;
The first solicitation will be limited to applicants seeking capacity contracts for eligible projects that will commence operation no later than December 31, 2027. Through the capacity contracts, DOE would commit to buying up to 50% of the maximum capacity of the power line for up to four decades. The objective of capacity contracts is that DOE would continuously purchase the capacity until the customer demand is sufficient to cover the costs. The DOE will later remarket the capacity, resulting in the restoration of funds.
$53 million for small clean businesses
The DOE also announced funding awards totaling $53 million for diverse small businesses, supporting 259 clean projects across 38 states covering many major areas, including carbon capture and energy storage in the U.S. The funds will encourage small clean energy businesses to deploy new solutions, a key component of the goal of a net-zero carbon economy by 2050.
The DOE administered the recent funding through its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The two programs would provide financial aid to technological innovation and facilitate technology transfer between research institutions and small businesses. The DOE said that the awardees of funds under SBIR and STTR programs have recently reported a sales revenue of $1.7 billion.
Earlier this month, the DOE <a href="https://mercomindia.com/us-funding-boost-domestic-battery-manufacturing/" target="_blank" rel="noopener">announced</a> funding of $3.16 billion from the Bipartisan Infrastructure Law to expand domestic battery production, strengthen domestic supply chains, and create new jobs in America.
Last year, the DOE <a href="https://mercomindia.com/us-provide-million-clean-energy/" target="_blank" rel="noopener">pledged</a> up to $100 million in financing for research and development of transformative clean energy technology to support the Biden Administration&#8217;s climate innovative agenda.

US Seeks Public Feedback on $2.5 Billion Transmission Lines Program

United States President, Joe Biden, signed an executive order to rejoin the Paris Climate Accord on the first day of his assuming office on January 21, 2021. The decision was an earlier commitment made by him during his presidential campaign.
In 2017, President Donald Trump had <a href="https://mercomindia.com/us-begins-withdrawal-process-paris-climate-change-accord/" target="_blank" rel="noopener noreferrer">cited</a> the unfair economic burden on American workers, businesses, and taxpayers by the country&#8217;s pledge to the agreement as a reason for withdrawing from the agreement.
&#8220;The United States has reduced all types of emissions, even as we grow our economy and ensure our citizens&#8217; access to affordable energy,&#8221;  Trump had said in June 2017.
&#8220;U.S. emissions of criteria air pollutants that impact human health and the environment declined by 74% between 1970 and 2018.  U.S. net greenhouse gas emissions dropped 13% from 2005-2017, even as our economy grew over 19 percent,&#8221; he had added.
On Thursday, The White House issued a statement signed by President Biden, which read, &#8220;Having seen and considered the Paris Agreement, done at Paris on December 12, 2015, do hereby accept the said Agreement and every article and clause thereof on behalf of the United States of America.&#8221;
In his inauguration speech, President Biden made it clear that addressing &#8220;a climate in crisis&#8221; was a priority, noting that &#8220;a cry for survival comes from the planet itself.&#8221;
&#8220;I warmly welcome President Biden&#8217;s steps to re-enter the Paris Agreement on Climate Change and join the growing coalition of governments, cities, states, businesses, and people taking ambitious action to confront the climate crisis,&#8221; the UN chief said in a statement.
A new instrument of acceptance of the Paris Agreement by the US, expressing its consent to be bound by the Agreement, was deposited with the Secretary-General later in the day. According to the UN chief&#8217;s spokesperson, the Paris Agreement will enter into force for the United States on 19 February 2021, per its article 21 (3).
India had already <a href="https://mercomindia.com/india-ratifies-paris-climate-change-agreement/" target="_blank" rel="noopener noreferrer">ratified</a> the agreement and became the 62nd country to do so.
The Paris Agreement is a climate change plan agreed upon by the United Nations at the Paris Climate Conference in 2015. To go into effect, the agreement required 55 countries to ratify, accounting for at least 55 percent of global greenhouse gas emissions.
The agreement has 191 signatories and 62 party states. The agreement provides for an easy flow of finance and technology.

Biden Rescinds Trump’s Stand on Climate Change; US Rejoins Paris Climate Agreement

Massachusetts-based Form Energy – a startup focusing on making battery systems that can store renewable energy (solar and wind) for longer durations – said it received its largest funding yet.
According to co-founder and chief executive officer (CEO) Mateo Jaramillo, <a href="https://formenergy.com/" target="_blank" rel="noopener noreferrer">Form Energy</a> recently closed a Series C funding of more than $70 million- a landmark for the company. Total funding for the company so far stands at over $120 million. Jaramillo did not name the investors, but he did add that further details will be in the public domain in the next couple of weeks.
In an interview with Reuters, Jaramillo said that the positive response from new investors indicates that the market is growing faster. According to renewable energy experts, battery storage is the missing piece that will help push fossil fuel-based energy to new heights.
Jaramillo was heading running the stationary battery team at Tesla before he co-founded Form Energy in 2017. Form Energy&#8217;s goal is to ensure that batteries can store and supply energy for days, as a long-lasting battery will significantly compound the power generated from wind and solar power.
Currently, the world is operating on lithium-ion, which lasts for nearly four hours. However, combining the latest technology and current applications could help create a new battery that can replace power plants that burn natural gas and coal, curbing greenhouse emissions.
The global venture capital funding for battery storage companies in the first nine months (9M) of 2020 was 25% lower with $1.2 billion in 21 deals compared to $1.6 billion in 25 deals in 9M 2019, according to Mercom&#8217;s<a href="https://mercomcapital.com/product/9m-q3-2020-funding-ma-report-storage-grid-efficiency/" target="_blank" rel="noopener noreferrer"> 9M and Q3 Funding and M&amp;A Report For Storage, Grid &amp; Efficiency</a>.
Jaramillo added in his interview that Biden&#8217;s fight against climate change could be a boon for Form Energy in the renewable sector while adding that storage is possibly the last &#8216;bipartisan&#8217; issue in the United States Congress.

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