Iowa's electricity needs are expected to increase by 30-60% in the next 20 years, and research shows the electric sector needs to transition to 100% renewable energy by 2035 to help reduce climate change impacts.
The Iowa Environmental Council says it's possible for the state to meet higher demand and achieve the carbon-free electricity goal.
Renewable energy from wind and solar rose to 67% last year in Iowa, according to the IEC's latest Condition of the State report. But import taxes on materials, including a 50% tariff on steel, and a rollback on federal tax credits could dampen momentum.
"A wind turbine is almost all steel. And it'd be nice if all that steel was available here in the U.S., but it's not. So, as that steel is imported, that's certainly going to increase the cost of building that turbine," said Steve Guyer, IEC's senior energy policy counsel.
The U.S. Supreme Court said Tuesday it will hear a case challenging the legality of President Donald Trump's tariffs.
Utility-scale wind and solar projects also face a severely shortened timeline for federal tax credits after the One Big Beautiful Bill Act was signed into law this summer. Projects must begin construction before July of next year to qualify for subsidies.
"It's very possible that as we look at this rapid increase in demand, they may be viable even without those tax credits. But sort of crystal-balling this, it's sort of hard to tell what impact will really occur," Guyer said.
The IEC report and other research show the costs to build and maintain wind and solar are cheaper than coal and natural gas, even without subsidies.
Earlier this year, Alliant Energy and MidAmerican Energy proposed large-scale wind and solar projects.
The authors of the IEC report said Iowa's utilities "must aggressively act to take full advantage of any Inflation Reduction Act incentives" and advocate for the elimination of coal generation by 2030.
IEC's annual report analyzes energy generation in the state, the main sources of greenhouse gas emissions and the impacts of fossil fuel generation on the environment and human health.
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