Inflation Reduction Act Spurs
Breakthrough in Domestic Wind Production
The transition to a clean energy economy means
more American manufacturing and more American jobs. Since President
Biden took office, the private sector has announced investments of
more than $180 billion in new or expanded clean energy manufacturing
projects in the U.S., with a substantial uptick since the passage of
the Inflation Reduction Act (IRA). Those investments are beginning to
show impressive returns.
On Nov. 16, 2023, GE announced the completion of the largest onshore
wind turbine nacelle– the component that sits atop the tower and
contains the turbine’s electrical generation equipment—ever
manufactured in the United States. This success, spurred by the IRA,
is the latest example of a recent surge in the production of
American-made clean energy technologies.
At GE’s newly expanded
wind manufacturing facility in Schenectady, NY, 200 newly employed
workers assembled the first nacelle for GE Vernova’s 6.1-158 onshore
wind turbine. The massive, land-based turbine, which can generate more
than 6 megawatts (MW) of electricity on its own, is almost 200 meters
tall and has blades that are more than 75 meters long. Six MW is
nearly double the capacity of the average onshore wind turbine
produced in the United States and enough to power more than 1,500
homes.
The domestic production of larger, higher-capacity wind turbines is
the culmination of a decades-long trend, which has been supported by
consistent R&D investments from the Department of Energy’s Wind Energy
Technologies Office. Larger turbines capture the power in the wind
with fewer units. Further, the use of large turbines:
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Reduces the cost of installation and operation,
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Simplifies the siting process, and
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Facilitates the management of community impacts,
including noise.
The IRA, which President Biden signed into law
in August 2022, laid the groundwork for GE’s expanded investment in
onshore wind production. The IRA features an Advanced Manufacturing
Production tax credit that incentivizes the domestic production of
clean energy technologies—including solar components, wind components,
inverters, and battery components—and critical minerals. Wind
manufacturers such as GE may be eligible to receive a per-unit tax
credit for each blade, nacelle, and tower they manufacture on
American soil. The IRA also provides a Domestic Content Bonus for
clean energy project developers who source their iron, steel, and a
large percentage of their manufactured products from producers in the
United States.
Next year, GE plans to manufacture components
for more
than 100 of these 6-MW onshore
turbines at its Schenectady facility.
Domestic manufacturing of clean energy technologies creates
American jobs, strengthens national and energy security, and will play
a major role in decarbonizing the industrial sector—which accounts for
28% of energy-related carbon emissions. To learn more about the
Department of Energy’s efforts to bolster the domestic production of
onshore wind energy, visit the Wind
Energy Technologies Office homepage.
