POWER November 2021 - 17

LEGAL & REGULATORY
Five Challenges to Meeting
Biden's Ambitious Solar
Energy Goals
Edward Hild
he U.S. Department of Energy (DOE) in September released
a study detailing the significant role solar power
could play in decarbonizing the nation's power grid, and
reducing the country's reliance on traditional fossil fuels.
The report outlines an ambitious timeline for ramping up the
production and utilization of solar power. It indicates that by
2035, solar energy has the potential to power 40% of the
nation's electricity-a significant jump from where we are
today, with solar energy sources representing just 3% of the
total electricity supply.
President Biden has made expansion of the country's use
T
of renewable energy a priority. This ambitious goal serves as
an example of his administration's decision to increase access
to renewable power resources across the U.S.
Solar power has been growing for decades and represents
one of the more established sources of renewable
energy. However, making the jump from 3% to 40% of our
nation's energy supply will require massive upgrades to energy
infrastructure, quick construction of new projects, major
incentives for energy producers, and more. Here are five
obstacles that stand in the way of meeting this aggressive
timeline.
Required Energy Grid Upgrades
The current power grid across most of the U.S. is set up to accommodate
natural gas and other traditional generation sources.
Switching to a heavier reliance on solar power will require
a modernization of the grid with new technologies that can
accommodate solar. This will require more solar panels, transmission
lines, storage facilities, and more, as discussed below.
Specifically, the U.S. must install an average of 30 GW of solar
capacity annually between now and 2025, and 60 GW per year
between 2025 and 2030. For context, the U.S. installed 15 GW
of solar power in 2020, a record high. The grid also will need to
be expanded to a wider geographic range so that all areas can
receive electricity from solar.
Lacking Battery Storage
Unlike natural gas, coal, and other energy sources that can
be accumulated and stockpiled, the U.S. will need to devise
more ways to store solar power for times when the sun is not
shining. This will require the rapid construction of battery storage
technology that can be used to store solar power until it is
ready to be used. These batteries are expensive to make, and
will require time for mass production. Right now, the country is
facing a significant shortage of battery storage capacity, which
will need to be addressed, especially if homes, businesses, and
facilities across the country are going to rely on solar power.
Limited Transmission Lines
Once captured via solar panels, solar energy will need to
November 2021 | POWER
be transported to the grid and then to homes, facilities, and
businesses. This will require the creation of a much more
robust, technologically advanced system of transmission
lines. Similar to the state of battery storage, our capacity for
transporting solar energy must be significantly expanded in
a short amount of time in order to meet the goals set out by
the Biden administration.
Ongoing Supply Chain Issues and Material Shortages
It's no secret that supply chain issues have for months plagued
manufacturers in a range of industries. As the U.S. moves to
capture more solar power, demand for supplies like aluminum,
silicon, steel, and glass, which are essential to the manufacturing
of solar panels, will rise significantly, potentially exacerbating
the existing shortages and high prices of these materials.
This will apply additional pressure on solar panel manufacturers
in the short term as they seek to double or even quadruple
production of solar panels in the near future.
Chinese Trade Restrictions
The U.S. is currently facing a ban on imports of silicon, one
of the most important materials in the construction of solar
panels, from several major China-based producers due to
forced labor violations. Earlier this summer, the Biden administration
reiterated that it would not be removing this
ban despite U.S. clean energy goals. While there are other
sources of silicon, these trade restrictions will make it more
difficult for solar panel producers to procure this critical material
in the short term.
While there are many logistical, political, and manufacturing
hurdles challenging Biden's aggressive timeline to ramp
up the use of solar energy, the Ways and Means Committee
in the U.S. House has taken steps to accelerate clean energy
development. The committee recently began marking
up the $3.5 trillion budget reconciliation bill by including tax
credits and incentives that support solar and clean energy
producers.
Notably, the committee proposes extending the full value
of production tax credits and investment tax credits by 10
years before their values begin phasing out. This would significantly
reduce the cost of creating the infrastructure and
technology needed to produce, transport, and utilize solar
energy. It will also provide much needed clarity for developers
and investors in solar energy as well as other clean
energy sources.
Reaching Biden's ambitious goal of solar energy representing
40% of the nation's total energy usage by 2035 will
be difficult, but not impossible. Biden has made his intentions
clear for tackling climate change by increasing the
country's reliance on renewable energy sources. ■
-Edward Hild is a principal in the government
relations practice of Buchanan Ingersoll Rooney.
www.powermag.com
17
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POWER November 2021

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