05/22/2023 | Press release | Distributed by Public on 05/22/2023 06:53
Press Release
May 22 2023
NEW ORLEANS, May 22, 2023 -Today, the American Clean Power Association (ACP) released its comprehensive Clean Power Annual Market Report for 2022 and its Clean Power Quarterly Market Report for Q1 2023,finding that combined U.S. wind, utility solar, and energy storage capacity had the third-largest year on record in 2022 with over 25 gigawatts (GW) of new clean power installed. However, a decline in deployment volume from the previous two years, combined with a historically low Q1 2023, underscore the continued headwinds facing the industry.
After historic clean energy incentives were signed into law in August 2022, clean power has seen record levels of announced activity, with the development pipeline swelling to nearly 140 GW by the end of Q1 2023 - 11% above where it was at the same point last year. However, it is too early to see this activity translate into installations, which have slowed for the first time since 2017.
"The clean energy revolution is underway," said ACP CEO Jason Grumet. "We have the technology, financial capital and workforce to power our economy with clean, affordable and secure energy. There is broad bipartisan support for American energy innovation. But the clean energy transition will not succeed unless Congress and Governors enable the siting and construction of new energy facilities and support the build out of transmission that is required to bring clean power to the people."
By the end of 2022, nearly 228 GW of clean energy was online, with 4 GW more added in Q1 2023. These resources provide 15% of the nation's electricity and deliver enough electricity to power the equivalent of over 62 million households. Clean power dominated new power capacity additions in 2022, comprising nearly 80% of all new grid additions.
Texas added twice as much clean energy capacity as any other state in 2022 (over 9 GW), maintaining its status as the state with the most operating clean power capacity (nearly 55 GW). Iowa and South Dakota each generated over half of their electricity from clean power last year.
Energy storage witnessed a record year in 2022 with 4 GW and 12 GWh commissioned, representing an 80% increase in total operating storage capacity. Hybrid project installations in 2022 were 60% higher than in 2021, setting a new record in the hybrid space at nearly 6 GW of installations.
In the nearly 140 GW development pipeline, solar accounts for 59% of all clean power capacity. Land-based wind accounts for 15% of the pipeline, battery storage represents 14%, and offshore wind claims the remaining 13%.
However, the year's progress was not enough to continue the annual growth trajectory of U.S. clean power, with the industry seeing a decline in combined installation volume for the first time in five years and the lowest Q1 (2023) in three years.
Contributing to the slowdown in installations were delays in 2022 that affected over 50 GW of projects in late-stage development, with a total of 63.3 GW - equivalent to powering nearly 7 million homes - experiencing delays by the end of Q1 2023. On average, these projects face delays of six months or longer, depriving ratepayers of clean, affordable electricity.
Project delays are primarily due to unclear permitting timelines, trade policy uncertainty, transmission shortages, difficulties sourcing solar panels, unresolved IRA implementation, and interconnection queue challenges (with over 1,741 GW waiting in queues at the end of 2022).
These challenges must be addressed to unlock the full potential of the nearly 140 GW of clean energy in the development pipeline.
The Clean Power Market Reports for 2022and Q1 2023are comprehensive overviews of the U.S. wind, utility solar, and energy storage markets, containingin-depth analysis of key industry statistics, trends, and rankings. The 180-page annual reportand the Q1 2023 reportare available exclusively to ACP members.
A public website with interactive data from the 2022 annual report can be viewed here.
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 atwww.cleanpower.org and follow us on Twitter @USCleanPower, Facebook and LinkedIn.