An industry that didn’t exactly champion the rise of renewables may be a surprising beneficiary of Rep. Alexandria Ocasio-Cortez’s Green New Deal: utilities.
The plan pressed by the freshman congresswoman from the Bronx aims to rid America’s power grids of carbon emissions. That could help speed up existing trends in the sector, Bloomberg reports, including coal retirements and the increasing deployment of renewables.
Utilities are increasingly looking to own wind and solar assets that are now among the cheapest electrical sources. It’s a change from the early days of renewables, when expensive projects were mandated by several states, and many utilities were reluctant to buy their production.
Ownership of wind and solar farms is “great for utility credit quality” because it allows these companies to earn a fixed return on the assets, according to the analysts led by Andy DeVries.
The Green New Deal’s promotion of electric vehicles is another perk for utilities, DeVries wrote, because “increased EV ownership leads to obviously higher electric deliveries and related investment in the grid.”