CALGARY, Alberta (March 12, 2025) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing a report that examines the impact of manufacturing load resulting from increased domestic manufacturing driven by demand, tariffs and production economics. The report also explores regional load growth variations influenced by infrastructure and adoption trends, the impact of recent legislation and tax credits on manufacturing and the comparative economics of imports versus domestic production.
“Domestic manufacturing of clean energy materials is expected to rise because of tariffs and the desire to reduce reliance on the international supply chain. However, we find the value of Inflation Reduction Act (IRA) manufacturing credits remains unmatched,” said Kevin Kang, senior analyst at EIR.
“The reshoring of manufacturing is expected to account for less than 2% of the overall load across the U.S. The Southeast will see most of this growth due to existing manufacturing infrastructure, while other regions like ERCOT will be mostly unaffected,” Kang said.
“Historically, semiconductors have been primarily imported from Taiwan, but we expect to see a growing level of domestic production through to 2050 as demand for AI and data center infrastructure grows. The CHIPS and Science Act is creating an equal playing field in terms of production costs,” Kang said.
Key takeaways from the report series:
- Tariffs on clean energy equipment can boost U.S. manufacturing but won’t replace the value of IRA credits. Using domestic products in renewable projects adds investment tax credit benefits.
- Manufacturing activity will rise through 2050 as domestic production grows, but solar output may decline after 2030 because of tax credit expiration.
- Increased manufacturing will add more than 12 GW of annual load to the L48. The Southeast will be impacted by solar reshoring, while ERCOT and eastern PJM will remain largely unaffected.
- EIR finds IRA credits and tariffs make domestic battery manufacturing 54% cheaper than imports while achieving cost parity for chip production. However, domestic wind blade and solar module manufacturing remain 113% and 12% more expensive than imports, respectively.
EIR’s analysis pulls from a variety of Enverus products including Enverus Foundations® | Power & Renewables.
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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
