NEW REPORT: Q4 2022 Shows Positive Energy Storage Growth, But Policy and Market Headwinds Slow Clean Energy Potential
U.S. Clean Energy Project Pipeline
WASHINGTON, D.C., February 16, 2023 – The American Clean Power Association (ACP) today released its Clean Power Quarterly Market Report – Q4 2022, which shows that the U.S. wind, solar, and battery storage sectors installed a total of 9.6 gigawatts (GW) of utility-scale clean power capacity last quarter – enough to power the equivalent of 2 million American homes with affordable, domestic energy.
While Q4 was the best quarter of 2022, it was the lowest fourth quarter for utility-scale clean energy project installations since 2019. A confluence of policy and market headwinds such as supply chain constraints, lengthy delays connecting projects to the grid, unclear trade restrictions, longstanding permitting obstacles and uncertainty over IRA implementation slowed project development in 2022. While ACP members have worked with federal, state and local officials to get over 25 GW of new clean power online, this progress fell short of industry and analyst projections.
“Affordable, American clean energy is on the rise, reducing both electric bills and pollution. But outdated regulations and unduly cumbersome permitting processes are slowing down the clean energy transition. These challenges are undermining progress across all energy technologies and must be addressed to create an energy system that is modern, reliable, clean and secure,” said Jason Grumet, ACP CEO.
Solar: Solar led wind and storage in quarterly installation capacity with 4.7 GW brought online in the last three months of the year. For the full year, solar installations totaled 12.6 GW – a slight decline compared to 2021 – and well short of the 30% growth expected for solar installs.
Storage: Battery storage had a record-breaking year: 4 GW were commissioned in 2022. This surpasses the previous record of 3 GW commissioned in 2021. Battery storage projects now make up 12% of the development pipeline.
Wind: Land-based wind ended the year with its strongest quarter, commissioning 4 GW of new projects. Despite this, the 8.5 GW installed in 2022 represents a 37% year-over-year drop. Notably, this was expected, largely due to the declining value of the Production Tax Credit available to wind.
The clean power development pipeline has reached a new high, thanks in part to the market’s reaction to the Inflation Reduction Act (IRA), with 13% more capacity in development queues since Q4 2021 and 135 GW of clean power projects in late stages of development.
However, in the first full quarter since the IRA went into effect, policy headwinds continue to put these landmark investments at risk and hold back the industry’s potential. The industry ended the year with the lowest fourth quarter since 2019, down 21% from 2021. Annual installations fell below both 2021 and 2020 levels, down 16% and 12% respectively.
A Record Year for Battery Storage
Enough Clean Energy to Power 61 Million Homes
Texas and California Continue to Lead
Policy Headwinds Facing Solar and Wind
Strong Development Pipeline
Power Purchase Agreements Continue to Rise
Download the Clean Power Quarterly Market Report – Q4 2022
About ACP: American Clean Power is the voice of the clean power industry that is powering America’s future, providing cost-effective solutions to the climate crisis while creating jobs, spurring massive investment in the U.S. economy and driving high-tech innovation across the nation. We are uniting the power of America’s renewable energy industry to advance our shared goals and to transform the U.S. power grid to a low-cost, reliable and renewable power system. Learn more about the benefits clean power brings to America at www.cleanpower.org and follow us on Twitter @USCleanPower, Facebook and LinkedIn.
This post does not have any comments. Be the first to leave a comment below.
Post A Comment
You must be logged in before you can post a comment. Login now.