Ryan Stancil,
Editor
Aug. 27, 2021
The slow-moving wheels of American legislation are set to forge ahead on potentially life-changing measures in the coming weeks.
Earlier this week, the U.S. House of Representatives adopted a $3.5 trillion budget resolution that will allow the creation of a spending package. It was passed by the Democratic majority along party lines and only after some maneuvering among party leadership. The hope is that all of this will be sorted out by the beginning of October, but there is still a lot of work to be done to quell concerns about spending from centrist members of the party.
Some of the things that Democrats want to focus on in the coming spending package include education and social safety nets, but the proposal would also include provisions for the country’s power sector.
It’s a measure called the Clean Electricity Payment Program and it’s one that investors should pay close attention to as the details of this budget get worked out.
In essence, this program is a bit of a “carrot and stick” method for deploying clean energy. Utility companies that generate a certain amount of clean energy would receive direct payments and those that don’t would be faced with fees.
The ultimate goal is to get utility companies to generate 80% of electricity from sources like wind, solar, and nuclear power by 2030. The move would cut out billions of tons of greenhouse gas emissions every year and would be a massive first step in President Biden’s plans for addressing climate change.
Remember, part of the president’s plan is to eliminate pollution from electricity by 2035 and have the U.S. at net-zero emissions by 2050. This program, if it gets implemented, would be a big step in reaching those lofty goals.
As it stands right now, about 38% of electricity generated here in the U.S. comes from carbon-free sources, so the sector has a long way to go. It comes second only to transportation for industries that produce the most greenhouse gasses, but the President wants massive changes in that sector to reduce emissions too. So the potential changes that could come from this are far-reaching.
With the numbers being the way they are now, there is plenty of room for growth and profit in the decades to come. The renewable energy market is expected to be worth somewhere around $1.1 trillion by 2027 in the U.S. and the move to hit Biden’s 80% target could spur over $1.5 trillion in investment on its own. That’s on top of the hundreds of thousands of jobs that would need to be created to support this societal shift.
The fight to do away with fossil fuels once and for all is just getting started, but this could be considered one of the biggest steps forward in that fight. It’s anyone’s guess how this will play out between now and when the bill is finalized, but it’s unlikely that clean energy is going anywhere. Costs are falling and its popularity is growing. These facts, in the face of time running out to do something to stop climate change’s worst effects, mean that we’ll likely see drastic change sooner than later.
If implemented, this plan would not only cut down on emissions but would give consumers some control over how they get their power. That’s because sources of clean power generation would be implemented in a “distributed generation” model. This means the power is generated close to where it’s used. Consumers won’t be at the mercy of big power companies and they will have more reliable means of power generation on top of reducing emissions.
This shift is already happening, though not many people know about it.
Thanks to plans like what Congress is putting forth, it’s only a matter of time before it catches on in the mainstream. When that happens, anyone invested in this technology will reap the benefits as money starts pouring in to the tune of trillions.
One particular company is really set to benefit. It uses technology that can create green energy storage through a distributed generation model and it’s going to corner this market as it takes off.
It’s set to be one of the biggest investment stories of the next decade. Getting in now means securing the kinds of profits that only come once in a generation.
Learn all the details about the company and how this technology works. You’ll see just what’s to be gained when green energy policies become the law of the land.
Keep your eyes open,
Ryan Stancil
Editor, Daily Profit Cycle
Ryan Stancil is an editor and regular contributor to Daily Profit Cycle. He’s been active in the financial publishing industry for more than half a decade, offering insights and commentary on technology and geopolitics to help readers make sense of the constantly changing landscape and how it affects their investments. His readers appreciate his "tell it as it is" writing style, where he always offers a fresh new perspective on what's happening in the market and leaves nothing unsaid.