The investment banking titan has estimated the US Inflation Reduction Act could drive up to
It argues this could kick-start the "electrification of America" by vastly transforming its power generation and infrastructure.
This would include boosting the base of installed renewable projects from 300GW to over 1,000GW in the next 10 years, while also promoting the manufacturing of solar, renewable energy storage and carbon capture technologies.
In a research note,
The bank also said that a successful effort to "electrify America" could cement the gap between US and EU energy bills, where EU energy costs are roughly 60 per cent higher, potentially causing a further de-industrialisation of
It fears electrification investments in EU member countries could fall short of expectations, and be worsened by inf lation.
The company has drafted its own European inflation reduction act plan, based on the RePowerEU proposals established by the
To achieve this, it has called on the EU to bring in granular legislation to cut down the approval time of green energy projects to about one year, alongside incentives to support "out of the money" technologies such as storage, renewable hydrogen and carbon capture and storage.
The financial giant has also suggested incentives to promote the reshoring of the supply chain for solar panels, renewable energy storage and hydrogen power technology.
(c) 2023 City A.M., source