Horizons Energy releases the North American Advisory Outlook semi-annually. Fall 2022 was released on November 29th, 2022. The Fall 2022 Advisory reflects prominent elements contained in the Inflation Reduction Act (IRA) to incentivize development of clean energy and storage technologies. The Advisory also reflects higher levels of carbon reduction reaching 75% by 2050 with two scenarios targeting an 84% reduction by 2050.
On August 16, 2022 the Inflation Reduction Act became law. The legislation contains numerous provisions including subsidies for investment in low carbon technologies, rebates to residential consumers and tax subsidies for the development of a range of carbon free power and associated storage resources.
A key provision of the law, starting in 2025, allows for ‘technology neutral’ application of either the Production Tax Credit (PTC) or the Investment Tax Credit (ITC) as well as carbon emission reduction goals.
The resulting carbon emissions are shown below with Zero Carbon Additions resulting in near net-zero emissions for the electric power sector in North America. High-level scenario assumptions are in the executive summary that is available for download.