On Tuesday, a group of US power providers announced the formation of a partnership to invest almost $6 billion in the growth of the domestic solar supply chain.
AES Corporation (AES.N) announced its participation in the U.S. Solar Buyer Consortium, together with Clearway Energy Group, Cypress Creek Renewables, and DE Shaw Renewable Investments, in an attempt to solve existing supply chain difficulties.
The partnership will spend $6 billion in a long-term strategic strategy to provide up to 7 GW of solar modules per year beginning in 2024.
According to official statistics, the United States added around 27 GW of utility-scale wind and solar capacity last year.
The US Bureau of Land Management anticipates an increase in government permits as it tries to satisfy a Congressional target for 25 GW of extra wind and solar capacity by 2025, enough to power about 4.75 million households. It anticipates permits for more than 30 GW of wind, solar, and geothermal power between fiscal years 2022 and 2025.
This month, US President Joe Biden eliminated tariffs on solar panels from four Southeast Asian countries for two years and used the Defense Production Act to encourage domestic solar panel manufacture.