Exploring the Complexities and Opportunities Presented by the Inflation Reduction Act (IRA)

By Better Today On Jun 20, 2024

TL/DR –

The energy sector is navigating the first year of the Inflation Reduction Act (IRA), a legislation aimed at accelerating the energy transition, but stakeholders are grappling with its intricate provisions and requirements. In the third segment of a podcast episode, Matt Kaden of Moss Adams discussed the challenges and opportunities presented for the renewable energy sector by the IRA, focusing on bonus credits, wage compliance, and market trends. Kaden, who has over 15 years of experience advising various energy market participants, delved into how additional incentives for using US-made components and developing in energy communities impact project valuations and risks, the complexities of ensuring labor requirements compliance, and the evolution of the insurance market and transferability of tax credits to support smaller developers.

June 19, 2024: Understanding the Impact of the Inflation Reduction Act on the Energy Sector

With the energy sector navigating the first year of the Inflation Reduction Act (IRA), understanding its impact is crucial for developers, investors, and policy-makers. This pivotal legislation aims to expedite the energy transition, presenting potential opportunities and challenges. However, the complexity of its provisions and requirements raises many questions.

How are energy market stakeholders adapting to the IRA’s evolving landscape? What uncertainties are shaping this transition? To dive deeper into these questions, Moss Adams has released the third and final segment of a special podcast episode, featuring the insights of Matt Kaden, Managing Director at Moss Adams.

The episode explores the critical nuances of the IRA, challenges and opportunities for the renewable energy sector, focusing on bonus credits, wage compliance, and market trends. The discussion also highlights:

Exploration of how additional incentives for using U.S.-made components and developing energy in communities impact project valuations and risks.
The complexity of ensuring labor requirement compliance and the implications for project financing.
How the insurance market and transferability of tax credits are evolving to support smaller developers and address uncertainties.

With over 15 years of experience advising various energy market participants, Kaden’s insights are informed by his extensive work with investor-owned utilities, infrastructure funds, and asset owners and investors in the renewable energy and energy transition space.