Nearly $8 billion in private sector clean energy investments were canceled, closed or downsized in the first three months of the year, according to clean energy business group E2.
The pullback is more than three times the total investments canceled over the previous 30 months, according to E2, and comes as investors struggle under economic and market uncertainty and rising concern over the potential elimination of tax credits at the center of Democrats’ climate law.
In the first quarter of the year, 16 new large-scale factories and other projects were shuttered or shrunk, according to E2, which has tracked clean energy investments made since the passage of the Inflation Reduction Act.
Those cuts are impacting Republican-held districts and states. Among those investments affected were Bosch’s suspension of a $200 million hydrogen fuel cell factory in South Carolina, T1 Energy’s cancellation of a $2.6 billion battery factory in Georgia and KORE Power’s cancellation of a $1.2 billion battery plant in Arizona.
