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The United States’ largest renewable energy developer has warned President Joe Biden against imposing further trade tariffs on Chinese clean energy technology, saying they could slow the green transition.
Rebecca Kujawa, CEO of NextEra Energy Resources, told the Financial Times that the tariffs would raise costs for consumers and make it “more difficult” to meet the country’s clean energy targets.
“It creates an even greater level of uncertainty,” Kujawa said.
“Uncertainty in the development process will undoubtedly lead to higher costs for customers and could make it harder to achieve some of the Biden Administration’s clean energy goals.”
NextEra’s statement adds to a series of complaints from industry groups and developers, who warn that the new tariffs will slow decarbonization and increase costs.
The Biden administration last month introduced a set of tariffs on Chinese clean technology to protect emerging U.S. industries after warnings that cheap imports were making it harder for manufacturers to operate even with subsidies from landmark inflation-fighting legislation.
On June 7, the U.S. International Trade Commission voted unanimously to continue its investigation into a petition filed by a group of solar manufacturers, including First Solar and Q Cells, seeking anti-dumping duties against Chinese solar manufacturers in Southeast Asia, from which the U.S. sources the majority of its panels.
“Trade remedies are essential to the rapid growth of the industry, as without them, targeted imports will capture the U.S. market,” said Laura Elsabawi, a partner at Wiley Lane who represented the petitioners at the ITC hearing in May.
The potential new tariffs have sparked a fierce industry battle between major domestic manufacturers, who say the new tariffs are needed to compete with cheap imports from Asia, and operators, who warn that the tariffs will increase the price of renewable energy because domestic supplies are limited.
“If solar is seen as a product with very uncertain costs, it becomes harder for customers to commit to using the technology,” said Jim Murphy, CEO of Invenergy, a U.S. renewable energy developer that makes panels in Ohio with Chinese manufacturer LONGi.
“Why should we impose tariffs on imported goods if we don’t have any manufacturing in the country?”
The tariffs that dismember the clean energy sector highlight the tricky tightrope facing the Biden administration as it tries to green the world’s largest economy while building up supply chains for clean technologies that are largely made in China.
“There’s a natural tension in the U.S. right now between China policy and climate change policy,” said Herbert Crowther, an analyst at Eurasia Group, adding that tariffs would lead to a “slower, short-term rollout” until domestic industries develop.
“In the US political context, China policy sells much better than climate change policy after all.”
The prospect of surging electricity demand from artificial intelligence and manufacturing data centers is putting pressure on the U.S. power grid to decarbonize. The U.S. added 5.6 gigawatts of new solar, wind and battery storage systems in the first quarter of 2024, up 28% from the same period last year, according to the U.S. Clean Power Association.
The White House has set a goal of increasing electricity generation from just over 20 percent last year to 80 percent by the end of the century and 100 percent by 2035.
Kujawa also warned lawmakers against politicizing clean energy and emphasized its role in economic development. NextEra, based in Juno Beach, Florida, has transformed itself into a renewable energy giant over the past decade in a Republican-run state opposed to prioritizing climate change mitigation. Earlier this week, NextEra said it would double its existing renewable energy capacity by 2027, installing 47GW from 37GW.
“Renewable energy has been a catalyst for economic development in local communities,” Kujawa said. “Without politicizing it, the reality of real economic development, real value for customers, would become clear.”
Climate Capital
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