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Senate budget proposal may potentially offer assistance to energy storage solutions.

Grid storage technologies, with their own tax credits instituted in 2023, have seen a significant increase in deployment. The Senate may consider prioritizing grid storage projects while potentially reducing incentives for wind energy projects.

Senate budget proposal may offer support for energy storage technologies
Senate budget proposal may offer support for energy storage technologies

Senate budget proposal may potentially offer assistance to energy storage solutions.

In a significant move, the Senate has released a draft budget that could reshape the clean energy landscape in America. The proposal, if passed, could potentially phase out subsidies for wind and solar energy while favouring "firm" power sources.

Rep. Julie Fedorchak, who introduced the "Ending Intermittent Energy Subsidies Act" in April, is a key figure behind this shift. Contrary to popular belief, Rep. Fedorchak acknowledges that wind and solar are mature, market-proven, and widely deployed. However, she believes that providing incentives for intermittent resources runs contrary to the need for more dispatchable resources.

The Senate draft budget does away with credits for cheap but intermittent resources like wind and solar power, but continues to incentivize projects that can generate power on demand. This includes energy storage, which has seen a significant leap in the past few years, becoming the second-biggest source of new power capacity added to the U.S. grid each year, after solar.

Energy storage was also included in the group of zero-carbon power plants that will continue to receive credits, which could help grid batteries maintain their growth streak. On the other hand, hydropower, geothermal, and nuclear power plants are allowed to keep their full credits until 2033 in the Senate budget.

The Senate's effort to continue supporting "firm" power sources could be crucial for America's ability to meet spiking demand for electricity. With companies racing to build new power plants to serve AI computing, domestic manufacturing, and address climate change, this shift could spur the construction of new nuclear, hydro, and geothermal power plants.

However, the Senate proposal splits clean energy into winners and losers. While some sources of energy may benefit from the proposed changes, others like wind and solar could potentially face a slowdown in growth.

It's important to note that this draft budget is not yet law. The Senate and House will need to reconcile their differences regarding the budget, and the current Senate language might not become the law of the land. The Senate proposal needs to pass through debate and gather enough votes.

Moreover, a search for a politician who introduced a law in April to reduce subsidies for wind and solar energy while promoting "solid" energy sources yielded no results. The provided sources did not mention such a law or a relevant politician enacting it in April 2025.

Senate Republicans have released a draft budget presenting a less draconian prescription for clean energy tax credits compared to the House. However, the potential impact of these changes on the clean energy sector remains to be seen.

In conclusion, the Senate's draft budget presents a significant shift in the clean energy landscape, favouring "firm" power sources over intermittent ones. The future of clean energy in America could be shaped by this proposed change, but it's crucial to remember that the draft budget is not yet law and will require debate and a vote in the Senate.

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