Nexans’ mission is to guide the world into a new era of sustainable electrification. We will do this by revitalizing the current global electrical infrastructure, support the construction of sustainable generation sources, and bring electricity from the places with the highest supply to those with the highest demand. We don’t just sell cables; we sell an electrified future. Nexans’ rich history dates back 120 years to the start of the first electrical revolution. This revolution brought the first electricity to North America and Europe – with fossil fuels being the primary generation source. The second electrical revolution, between 1950 and 1970 sparked a massive influx of innovation and brought humanity to the stars. Around the end of that electrical revolution began the first revolution in places like Africa and Southeast Asia. This is where a massive opportunity lies – to electrify those regions that were not previously electrified with renewable energy from the start without fossil fuels. This is where the next electrical revolution will make its grand entrance. In the regions that were not previously electrified, there is a massive opportunity to drive sustainable electrification from the beginning. In the developed economies, there is an opportunity to transition from fossil fuels to more renewable sources of energy that facilitates the growth of new technologies and innovations that will once again bring humanity beyond the stars. We believe this is not just a short-term plan. The long-term benefits of sustainable electrification are monumental. It is both economically viable and environmentally friendly. Most importantly, it will improve the lives of people for generations to come.
The jury is still out on whether the Inflation Reduction Act (IRA) has helped contain or reduce inflation. Nevertheless certain provisions have delivered tangible benefits that deserve closer examination before any potential repeal. While some provisions may not have broad appeal, one success of the IRA has been its impact on strengthening US energy production. The bill speaks more to renewable energy innovation and increase in energy independence to support US economic growth than to direct economic impact. Repealing it wholesale risks far more than we might anticipate.
At its core, the IRA tax credits for energy generation is driving significant investment in innovative energy production. Because renewable energy makes up around 21.4% of the energy mix, these incentives have been passed down the chain to the benefits of the ratepayer, while simultaneously sustaining the creation of entire industries. These investments have sparked construction and manufacturing jobs across both red and blue states, proving that clean energy isn’t just an environmental initiative.
These tax credits have also bolstered America’s energy independence. Renewables such as solar, onshore wind, and offshore wind are integral to our domestic energy supply chain, reducing reliance on foreign sources, and making our own infrastructure more resilient. They’ve also driven initiative to improve long-term cost competitiveness, incentivizing developers to innovate to reduce costs.
Our current grid infrastructure and energy generation systems are nearing obsolescence and over the next decade the demand on these systems is expected to skyrocket. Data centers alone are expected to double their electricity demand, and by 2035, over 71 million electric vehicles will require around 400kWh to charge per month. Urbanization trends are compounding this demand as more people move to cities.
Without the IRA tax credits, we risk slowing down our ability to develop more power generation, growing the risk of rolling blackouts and higher energy costs for the average ratepayer, all while increasing our dependence on foreign sources of energy. Today’s decisions don’t impact today’s costs, they impact tomorrow’s ability to grow our economy.
Tax credits are not a new concept – they have been a bipartisan policy tool used for decades to support emerging technologies. From the artificial intelligence and quantum computing, to biotechnology, to government investments driving technologies like GPS and the Internet, these investments have repeatedly demonstrated their value. Renewable energy is no exception.
Since the IRA has been enacted, the renewable energy industry has created thousands of jobs and established numerous domestic manufacturing plants on US soil spurred by these domestic supply tax credit incentives. Manufacturing isn’t the only business reaping these benefits either. These credits have helped support more good-paying jobs in specialized professions such as those in the maritime industry for offshore wind or wind technician positions.
Energy diversity isn’t just good economics – it’s good security policy. With a diverse mix of energy sources (nuclear, fuel based. Hydro, renewable), we reduce the risk of monopolies that drive up costs, as seen with Standard Oil’s monopoly in the early 20th century. Competition forces developers to lower costs, driving the cost of energy downwards. Furthermore the energy has to come from somewhere and the question is not about the current costs of renewable energy but the future cost of energy in general to consumers without renewables in the energy mix of the future. There is nothing more damaging than energy you need but can’t find.
From a national security perspective, energy diversification mirrors a sound investment portfolio. Just as diverse assets protect against market volatility, multiple energy sources safeguard against physical and cyber threats. If one source is cut off, others can fill the gap, ensuring a stable energy supply and reducing our reliance on adversarial nations for critical resources. Not only are we safer from attack, but we are also responsible for our own generation. This further helps reduce costs, but also prevents us from being beholden to other countries, especially our adversaries, for energy and tangential resources such as rare minerals.
While there are certainly valid critiques of the IRA and potential benefits to revising pieces of the legislation, full repeal would undermine the significant progress made in clean energy innovation, economic growth, and national security. The IRA’s tax credits and investments have delivered tangible benefits that extend far beyond inflation, and policymakers should tread carefully before dismantling them.
Offshore wind in the United States is seemingly a Catch-22. People tend to have ideas that are either radically for or radically against this maturing technology. Some on the left tend to think of renewable energy, like offshore wind, as a panacea for climate change, while some on the right see most renewable energy as cost-intensive eyesores. The reality is that renewable energy will not solve all our environmental problems, and it is just as wondrous an experience to gaze upon as any coal or natural gas power plant in operation. What can be said for offshore wind is that it isn’t going away and the energy security and robust job market that follow this energy source are here to stay and grow.
According to 2022 data from the Energy Information Administration, despite being a net petroleum exporter, the U.S. economy continues to rely on energy imported from foreign sources. This reliance on foreign energy imports is a gap in our national security picture that could be filled with sources of renewable energy like offshore wind, bringing energy production home. As EVs grow in popularity, it’s even more critical to have sources of energy that are domestic and less susceptible to problems originating abroad.
It’s of course important that we do not eliminate all of our sources of energy from the equation. Offshore wind generation, for example, is dependent on wind strength at sea. We still will need other forms of energy generation, but offshore wind, as part of a more diverse energy mix, will make us more secure helping to safeguard the U.S. against everything from cyberattacks to physical attacks.
This is all not to mention the expanding job market across offshore wind. The job market that the industry is creating would make naysayers blush, with most facilities made to support offshore wind in deep red states, such as Nexans’ subsea cable manufacturing plant in Charleston, South Carolina and the maritime industry also benefiting, with shipbuilders in Louisiana, Florida, and Texas all hopping on board. The kicker is that these companies in red states are supporting wind farms in New York, Rhode Island, and New Jersey all deep-blue strongholds.
Offshore wind isn’t just another left-vs.-right issue. It’s something that could unite the country and allow us to become global leaders in an ever-growing industry. We are leaders in so many other fields, such as technology, healthcare, and artificial intelligence. We need to become leaders in offshore wind.