The US Senate is set to vote on a massive tax and spending bill that would increase taxes on clean energy factories and projects. In response, businesses have cancelled another $1.4 billion in new clean energy projects in May, adding to the total of $15.5 billion in cancellations since January 1.
The latest cancellations include battery, electric vehicle, and solar panel factories in West Virginia, New York, Alabama, Arizona, and Washington. These projects were expected to create nearly 12,000 new jobs. Republican congressional districts are losing the most, with over $9 billion in investments and almost 10,000 jobs cancelled or delayed.
Clean energy groups warn that the Senate’s proposal could lead to less available energy and higher electricity prices for consumers and businesses. “These cancellations are just the first shoe to drop,” said Michael Timberlake of E2 Communications. “Businesses are reacting to the expectation of higher taxes on clean energy.”
Despite the uncertainty, some businesses have announced new investments in clean energy projects. Nearly $450 million was invested in solar, EV, and grid and transmission equipment factories across five states. These projects are expected to create at least 1,310 new permanent jobs.
The cancellations come as more than half of all clean energy projects, jobs, and investments have been announced in Republican congressional districts. If the bill passes, it could also immediately halt several projects in Kansas, including a wind farm that was set to deliver 200 MW of clean energy by 2027.
Source: https://www.tdworld.com/utility-business/news/55300910/businesses-cancel-14-billion-in-new-factories-energy-projects-in-may-as-congress-pushes-forward-on-tax-increases