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December 9, 2021

Infrastructure Investment and Jobs Act of 2021 Boosts U.S. Supply-Side Investments in Energy Storage

The 2021 Infrastructure Investment and Jobs Act (IIJA) significantly increases direct federal funding over 5 years for energy storage demonstration projects, investments in the domestic battery supply chain, and deployments of energy storage in programs to promote grid resilience and flexibility. ESA’s summary covers details on:

  • $505 million for stationary energy storage demonstration projects, in addition to a new DOE Office of Clean Energy Demonstrations to oversee such projects;
  • $6.15 billion for bolstering the U.S. battery supply chain;
  • $14.7 billion for programs that invest in the grid and that include energy storage as a qualified technology; and
  • Several storage-focused reports and improvements in electricity analyses and data reporting that elevate the role of storage in the economy.

These investments are focused on infrastructure projects that will improve the grid and create good-paying domestic jobs. Hence, the projects are subject to the requirement for contractors to pay locally prevailing wages and to favor the use of materials made or manufactured in the US.

Read ESA's summary of IIJA energy storage provisions

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