January 17, 2023 — A leading wind turbine maker is imploring Washington and state governments for more policy support only months after Congress passed hundreds of billions of dollars in subsidies for green energy, arguing the new law alone is insufficient to help the industry reckon with high inflation.
The ask from Spanish manufacturer Siemens Gamesa illustrates how the persistence of inflation poses a threat to the decarbonization goals of President Joe Biden, who is now ill-equipped to pass new policy to supplement the new Democratic climate law with Republicans in control of the House of Representatives.
Siemens Gamesa said the Inflation Reduction Act, which the unified Democratic government passed in August, provided strong incentives and sends positive signals to the industry but is not a “silver bullet” due to the lasting and limiting effects that inflation is having on new investment.