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The incentives-led framework of the federal Inflation Reduction Act (IRA) reinforces the importance of voluntary markets for energy customers to procure carbon-free electricity (CFE) aimed at accelerating U.S. grid decarbonization. The IRA, together with the CHIPS and Science Act (CHIPS) and the Infrastructure Investment and Jobs Act (IIJA), have set the stage for massive technological innovation and market commercialization.
While CHIPS allocates money for early-stage innovation, IIJA provides support for commercialization of projects. The IRA complements those earlier measures with incentives for clean energy generation and customer offtake from the projects.
With a bottom-up approach, clean energy uptake…