The American Clear Energy Affiliation has launched its Clear Energy Market Report Q1 2022, which reveals that wind, utility-scale photo voltaic and battery storage sectors put in 6,619 MW of utility-scale clear energy capability – sufficient to energy 1.4 million American houses. The document capability is essentially as a result of positive aspects in battery storage set up, with storage installations up 173%, photo voltaic installations up 11% and wind installations down 3%, as in comparison with the primary quarter of 2021.
Whereas these positive aspects contributed to a document first quarter for clear energy installations, the speed of development slowed to 11% within the first quarter of 2022, in comparison with the 50% year-over-year development price reported between 2019 and 2021.
“The record-breaking quarter for clear energy is encouraging, however the business nonetheless faces many hurdles which are stalling development,” says ACP CEO Heather Zichal. “Ongoing uncertainty from the Division of Commerce’s unwarranted photo voltaic tariff case, the unsettled destiny of fresh vitality tax credit, provide chain points and inflation are all making funding and planning selections a troublesome problem. The business wants decision and coverage readability if we’re to satisfy the Biden administration’s clear energy targets of reaching a web zero grid by 2035.”
Cumulatively, working clear energy capability within the nation is now practically 208 GW – sufficient to energy 57 million houses in America. The 90 new initiatives added to the grid signify $9.3 billion in capital investments.
Development in battery storage helped to propel the primary quarter to document territory. Storage capability additions grew 173% in comparison with the primary quarter of 2021, whereas photo voltaic skilled extra modest development of 11% and wind declined 3%. The Q1 report reveals 56 new utility-scale photo voltaic initiatives got here on-line in 2021, for a complete of two,997 MW. 10 new wind initiatives got here on-line, totaling 2,865 MW. Lastly, the business put in 24 new battery storage initiatives with a complete capability of 758 MW/2,537 MWh.
Whereas photo voltaic installations slowed within the first quarter of 2021 as a result of pandemic-related challenges within the provide chain, inflation, commerce dangers and lack of regulatory certainty, the business is dealing with one other important impediment because it seems to be past Q1 with the Division of Commerce’s inquiry into photo voltaic manufacturing in Southeast Asia.
This report gives an replace on the Division of Commerce’s choice to provoke a evaluation of a petition to use anti-dumping and countervailing duties towards photo voltaic module producers positioned in Southeast Asia. ACP finds that the inquiry has had a chilling impact on the U.S. photo voltaic business – each instantly and over the subsequent two years. Previous to Commerce’s choice to provoke this inquiry, market researchers anticipated 17 GWdc of utility-scale photo voltaic capability to be added to the grid in 2022 and practically 20 GWdc in 2023. ACP’s market influence survey signifies at the least 65% of the projected crystalline silicon (c-si) market throughout 2022-2023 is already liable to cancellation or delay. The commonest purpose for delay or cancellation is lack of module availability.
Whereas the business at present sits on a document quantity of fresh energy capability within the pipeline, the speed of development of that pipeline can be slowing. The pipeline grew by simply 4% in the course of the first quarter – a lot decrease than the 12% quarterly growth skilled all through 2021. There are nearly 1,100 initiatives within the pipeline with a complete working capability of 125,476 MW. This consists of 40,522 MW of initiatives beneath building and 84,953 MW in superior growth.
In complete, 14.8 GW of capability has been delayed as of the tip of the quarter. On the finish of 2021, 11.7 GW of fresh energy initiatives skilled delays. Of that, 3,440 MW have since come on-line. Nevertheless, an extra 6,576 further MW of fresh energy initiatives skilled delays in the course of the first quarter, bringing the entire delayed capability to 14.8 GW. Based mostly on ACP’s evaluation, on common these initiatives have been delayed by seven months.
Photo voltaic initiatives are essentially the most vulnerable to delays, with 8.6 GW of photo voltaic initiatives at present delayed. Photo voltaic accounts for 58% of all initiatives delayed and 60% of initiatives delayed that had been anticipated on-line this quarter. These venture delays occurred earlier than the Division of Commerce initiated their evaluation on the finish of Q1, and the inquiry is predicted to have an effect on photo voltaic deployment by means of 2023. Wind makes up 31% of complete delays within the first quarter of 2022, and battery storage makes up 11% of delays.
Regardless of regulatory headwinds, photo voltaic continues to be the main know-how within the pipeline, accounting for 56% of all clear energy capability in growth. Land-based wind accounts for 19% of the pipeline, offshore wind represents 14%, and storage claims the remaining 12%.
Texas represents practically a fifth of the entire pipeline (21,974 MW), adopted by California (14,114 MW), New York (8,750 MW) and Virginia (6,439 MW).
The biggest initiatives to come back on-line within the first quarter embrace Traverse Wind Vitality Heart in Oklahoma owned by AEP and developed by Invenergy (998 MW) in addition to Slate Photo voltaic+Storage in Kings County, Calif., which was the most important hybrid venture (300 MW of photo voltaic capability and 140 MW/561 MWh of battery storage capability). Valley Heart Battery Storage Mission, owned and developed by Terra-Gen, in California has a 140 MW battery system with 560 MWh of vitality storage capability.
Energy buy settlement (PPA) bulletins noticed a major decline, down 10% from final quarter and 15% from the primary quarter of 2021. For the quarter, firms introduced 6,339 MW of recent PPAs. Company patrons had been amongst these extra hesitant to signal on to new clear energy PPAs. Business & Industrial (C&I) offtakers introduced 3,309 MW of recent PPAs this quarter, a notable 46% decline from the primary quarter of final 12 months. Based on LevelTen, PPA costs rose throughout all areas and applied sciences this quarter as a result of provide chain disruptions and growing costs of commodities and labor.
The highest company purchasers within the first quarter had been Verizon (859 MW of recent PPAs), The Markley Group (400 MW) and QTS Actuality Belief (350 MW).
Utilities, however, elevated PPA bulletins by 53% in comparison with the primary quarter of final 12 months, with 2,513 MW introduced. In complete, 15 utilities introduced PPAs this quarter. The best concerned the Salt River Mission (581 MW), Nice River Vitality (400 MW) and Sacramento Municipal Utility District (350 MW).
The primary quarter noticed important exercise within the offshore growth sector. Louisiana introduced an offshore wind aim of 5 GW put in by 2035 as a part of the state’s first ever Local weather Motion Plan. So far, 9 states have set offshore wind procurement targets totaling practically 45 GW.
In February, the Bureau of Ocean Vitality Administration held a lease sale for six industrial lease areas within the New York Bight with the potential to generate as much as 7 GW of fresh vitality. The public sale lasted three days and introduced in $4.37 billion in federal income.
New York State broke floor on the 130 MW South Fork Wind Mission as Ørsted and Eversource’s three way partnership introduced the approval of the ultimate funding choice for the venture, which is predicted to be operational by the tip of 2023.
On the finish of March, the Home of Representatives handed H.R. 6865, the Coast Guard Authorization Act. Amongst many provisions, this invoice would impose citizenship-based restrictions for crews on foreign-flagged vessels working within the U.S. Outer Continental Shelf. ACP is actively partaking with the Senate and White Home to forestall this coverage from changing into legislation as it will severely impede offshore wind deployment and progress towards the U.S. aim of deploying 30 GW of offshore wind by 2030.
Learn the complete report right here.