Empowering the Green Transition - Week 33

From the US energy storage boom catalyzed by the Inflation Reduction Act to Tesla's strategic moves in the EV market - it’s another issue of our weekly digest. Join us as we navigate the latest milestones and innovations shaping the renewable energy and eMobility sectors.

US Energy Storage Thrives with Inflation Reduction Act

The Inflation Reduction Act has catalyzed the U.S. energy storage sector, prompting 210 new clean energy projects and potential investments of $86.3 billion. Firms like Norwegian battery maker Freyr are expanding rapidly, while others, like Hanwha Qcells, invest in domestic manufacturing to reduce reliance on Chinese imports.

Unprecedented Solar Growth in the US Post-IRA

Since the Inflation Reduction Act (IRA) was introduced in 2022, the US has seen over $100 billion in private solar and storage investments. This has led to the announcement or expansion of 51 solar factories, translating to 155 gigawatts of new production capacity. By 2026, the US's manufacturing capacity is expected to increase 17-fold, with post-IRA battery storage also witnessing significant growth.

Our Expert's Comment:

The Inflation Reduction Act (IRA) has undeniably spurred a transformative shift in the energy landscape across the US. The significant rise in investments, particularly in the solar and battery storage domains, highlights the IRA's success in creating a favorable climate for the expansion of renewable energy.

While many challenges remain, the continued emphasis on building stronger regional supply chains and re-invigorating critical manufacturing capabilities through the IRA and the CHIPS Act has helped continue positive momentum towards a more sustainable future.

Spencer Borison , Associate Partner @ Renewable Energy Practice, Codibly

Tesla Introduces More Affordable Model X and Model S Variants

Tesla has launched cost-effective versions of its Model S and Model X in the U.S., priced $10,000 less than the standard models. The Model X Standard Range is priced at $88,490 with a range of 255 to 269 miles, while the Model S Standard Range is available at $78,490 with a range of 298 to 320 miles. This move comes as Tesla aims to enhance its market presence amidst intensifying global EV competition. The company has also adjusted prices in pivotal markets, including recent reductions for the Model Y and Model 3 in China.

Australia's Challenge: Smart Integration of Rooftop Solar

Leading the world in rooftop solar deployment, Australia faces the unique challenge of integrating inverter-connected generators into its vast electricity grid. As inverter-based power nears 40% of total generation, the need for innovative solutions and research becomes paramount. Australia's journey could set a global benchmark for seamlessly integrating renewable energy.

Virtual Power Plants: Addressing Renewable Energy's Intermittency

As renewable energy grows, the need for grid reliability intensifies. Virtual Power Plants (VPPs), aggregations of distributed energy resources managed by software, are emerging as a solution, storing excess energy and supplying it during renewable downtimes. While the VPP concept isn't new, its importance is escalating with the rise of battery storage, promising a more adaptable and resilient energy grid.

Tesla Opens Doors to Third-Party Applications

Tesla has reportedly taken a significant step by integrating its first official third-party application, signaling a potential shift towards a more open platform. This move showcases Tesla's adaptability and hints at the possibility of a dedicated Tesla App Store in the future.

Lamborghini Gears Up for Its Electric Debut

Lamborghini recently introduced its first all-electric model during Monterey Car Week. This 2+2, two-door vehicle, developed in partnership with Porsche, is targeted for a 2028 debut, coinciding with the 60th anniversary of the legendary Lamborghini Espada.

General Motors Invests in AI-Powered Battery Start-Up Mitra Chem

General Motors has invested $60 million in Mitra Chem, a Silicon Valley battery tech start-up championing AI-powered iron-based cathode materials for broader electric vehicle adoption. The collaboration aims to develop batteries for EVs on GM's Ultium platform, promising affordability and accessibility. Mitra Chem can significantly expedite the lab-to-production process by leveraging a unique machine-learning algorithm. With success, their batteries could power GM vehicles by the decade's end, aligning with GM's aggressive push into the EV market.