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The largest US renewable energy developer has warned President Joe Biden against imposing more trade tariffs on Chinese clean energy technologies as it risks slowing the green transition.
Rebecca Kujawa, CEO of NextEra Energy Resources, told the Financial Times that tariffs were raising costs for consumers and making it “more difficult” to achieve the country’s clean energy goals.
“It increases uncertainty,” says Kujawa.
“Any uncertainty in the development process could certainly increase costs for customers and make it more difficult to cross the finish line some of the clean energy goals the Biden administration has pursued.”
NextEra’s statement adds to a chorus of complaints from industry groups and developers, warning that new obligations will delay and increase the costs of decarbonization.
Last month, the Biden administration introduced a round of tariffs on Chinese clean technologies to protect the nascent U.S. industry after warnings that cheap imports have made it difficult for manufacturers to operate, even with subsidies from the landmark Inflation Reduction Act.
On June 7, the U.S. International Trade Commission voted unanimously to continue investigating a petition filed by a group of solar manufacturers, including First Solar and Qcells, calling for anti-dumping duties on Chinese solar cell makers in Southeast Asia, where the US supplies the majority of its panels.
“Trade assistance is critical to the burgeoning growth of the sector. Without this, imports will take over the US market,” said Laura El-Sabaawi, a partner at Wiley Rein, who is representing the petitioners at an ITC hearing in May.
The potential new tariffs have sharply divided the industry between major domestic producers, who argue they are needed to compete with cheap imports from Asia, and operators, who warn tariffs will raise prices of renewables due to limited domestic supply.
“If solar energy is viewed as a product with very uncertain costs, it is difficult for customers to make commitments to use that technology,” said Jim Murphy, CEO of Invenergy, a U.S. renewable energy developer that partnered with China manufacturer Longi produces panels. Ohio.
“We have no domestic production here, so why should we tax imports?”
The tariffs underscore the difficult balancing act the Biden administration faces as it struggles to green the world’s largest economy while building a supply chain for clean technologies, most of which are produced in China.
“There is a natural tension in the US right now between China policy and climate policy,” said Herbert Crowther, an analyst at the Eurasia Group, adding that tariffs would result in a “slower implementation in the near term” until there is a domestic industry had been developed. .
“In the American political context, China’s policies ultimately sell far more than climate policies.”
Expectations of rising energy demand from data centers for artificial intelligence and manufacturing have increased pressure on the U.S. power grid to decarbonize. According to the American Clean Power Association, the U.S. installed 5.6 GW of new solar, wind and battery systems in the first quarter of 2024, a 28 percent increase over the same period last year.
The White House has set a goal of 80 percent renewable energy generation by the end of this decade and 100 percent by 2035, up from just over 20 percent last year.
Kujawa also warned lawmakers against the politicization of clean energy and emphasized its role in economic development. Headquartered in Juno Beach, Florida, NextEra has transformed over the past decade into a renewable energy giant in a Republican-controlled state that has resisted prioritizing climate change mitigation. Earlier this week, NextEra announced it would double its existing renewable energy capacity by 2027, deploying 37GW-47GW.
“Renewable energy sources have stimulated economic development in local communities,” says Kujawa. “If we don’t respond to the politicization, the reality of real economic development, real value for customers can shine through.”
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