how the utilities sector is changing
in 2020 president joe biden called for the country to achieve a 100 clean energy economy and net zero greenhouse gas emissions no later than 2050 committing nearly 2 trillion in investment to achieve this goal the energy and utility industry has an opportunity to advance its grid modernization and clean energy efforts by tapping into funds allocated in the infrastructure investment and jobs act which includes 65 billion earmarked for upgrading the national power infrastructure a 2022 industry outlook report by deloitte identified five trends for the utilities industry which include enhanced competition expansions in infrastructure greater electrification of transportation an emphasis on disaster readiness and traditional energy players entering the renewable energy field according to fidelity utility sector portfolio manager douglas simmons the fundamentals of utilities in 2022 look very robust overall driven by the ongoing shift toward renewable energy sources and away from fossil fuels utilities remain wary of regulations that may force the closure of power plants though the sector largely supported the tax credits proposed in a bill called build back better which aimed to provide more than 300 billion in direct subsidies for wind solar transmission storage carbon capture and nuclear projects build back better failed to pass the senate and was replaced by the inflation reduction act ira which was signed into law in august 2022 the ira appropriates 369 billion for climate and clean energy initiatives including tax incentives that should reduce the costs of the renewable energy transition for utilities companies 