Clean energy development in IRA to benefit red states whose politicians opposed it

Although Republicans did not vote for the Inflation Reduction Act, several benefits from the bill will still reach voters in red states, panelists said Oct. 20 during the Siemens Energy Talks: Houston conference.

President Joe Biden signed the Inflation Reduction Act in August, clearing the way for $370 billion in energy security and climate change spending over the next decade, with the intention of spurring innovation in clean energy and transportation manufacturing and driving down greenhouse gas emissions. The bill was approved with votes from Democrats alone, without any backing from Republicans in Congress.

"It's definitely more than ironic," David Balfrey, senior vice president of asset management and technology at Apex Clean Energy, said during a Siemens Energy Talks: Houston session on renewables.

Energy transition impacts

People tend to vote for the "jersey color," or a specific party, versus who is the best candidate or in their own best interest.

"Clean energy really has an opportunity to benefit the community," Balfrey said, referring to benefits such as new jobs, improved infrastructure and an improved tax base, which leads to benefits like improved schools, Balfrey said.

The IRA creates support across a broad range of technologies to support decarbonization targets, Balfrey said. It also gives long-term certainty to clean energy development, and energy storage is a major part of achieving decarbonization goals, he added.

"We definitely need to see a step change to take advantage of that technology," Balfrey said, adding that storage development is heading in the right direction to achieve that.

Biden has set a goal to decarbonize the US power sector by 2035. The US has a goal of a 50%-52% reduction in greenhouse gas emission by 2030.

Midterm elections

While Republicans are expected to take control of the US House of Representatives in the Nov. 8 midterm elections, the Senate outcome is still uncertain, Ron Brownstein, CNN senior political analyst, senior editor for The Atlantic and contributing editor for National Journal, said during a presentation on what the midterm election could mean for the US energy sector.

All 435 House seats are up for grabs in the Nov. 8 election, with 35 Senate seats on the ballot.

Democrats may have an edge with younger voters focused on climate change, Brownstein said, adding that young voters, who are more focused on the impacts of climate change, are voting up to 62% Democratic.

The current political strategy has left the country in such a divide that control is really decided by a handful of states, Brownstein said, adding about 10 states split the presidential vote in the last four elections, meaning it comes down to about 400,000 voters who get to decide whether the country changes course.

"It's simply not healthy to have such major impacts from such minor segments of population," Brownstein said.