ARKANSAS, Nov 02 (Future Headlines)- The American Clean Power Association (ACP) has unveiled its highly anticipated Clean Power Quarterly Market Report for Q3 2023, showcasing remarkable achievements and progress in the clean energy sector. The report’s findings indicate that the United States continues to make impressive strides in clean energy generation, with significant contributions from various sources.
One of the standout statistics from the report is the installation of 5,551 megawatts (MW) of utility-scale clean power capacity in the third quarter of 2023. This remarkable achievement is enough to power approximately 813,000 American homes, reflecting the industry’s substantial contribution to meeting energy demands while reducing carbon emissions.
These installations represent a remarkable 13% increase compared to the same period in 2022, setting a record for the strongest third quarter to date. This growth underscores the undeniable demand for American clean energy.
The report reveals that the United States now boasts over 243 gigawatts (GW) of operating clean power capacity, providing more than 16% of the country’s electricity needs. This cumulative capacity translates to sufficient electricity to power nearly 65 million homes, underlining the significant role clean power plays in the nation’s energy portfolio.
One of the most promising aspects of the clean energy sector is the rapid installation of grid-scale battery storage. In just nine months, the industry has surpassed total battery storage installations for the entire year of 2022. The third quarter of 2023 saw the connection of 2,142 MW / 6,227 MWh of storage, bringing year-to-date installations to 4,374 MW / 13,444 MWh.
This growth in battery storage capacity is a testament to the sector’s commitment to grid reliability and the integration of renewable resources, as well as its ability to respond to fluctuating demand and daily load changes.
Solar energy continues to be a cornerstone of clean power generation. In Q3 2023, the industry installed 3,121 MW of solar capacity, outpacing the rate of installations in 2022, although it fell slightly behind the volumes achieved in 2021. Solar’s consistent contribution to the energy mix underscores its importance in the transition to a sustainable energy future.
While solar and battery storage installations are thriving, land-based wind capacity faced challenges in Q3 2023. Only 288 MW of land-based wind capacity were commissioned in the third quarter, representing a steep 77% decline year-over-year. The report attributes this decline to the overall slowdown in year-to-date installations, which fell by 6%.
The report emphasizes the impact of the Inflation Reduction Act (IRA) on the clean energy industry. While the full extent of this impact is yet to be determined, evidence suggests that the IRA has spurred growth in the utility-scale project development pipeline. By the end of Q3 2023, the project pipeline had increased by 10% year-over-year, reaching an impressive 145,545 MW. Currently, there are 59,568 MW under construction and 85,977 MW in advanced development.
Notably, the battery storage pipeline exhibited the most substantial growth, increasing by 50% year-over-year, reflecting the industry’s commitment to energy storage solutions.
Despite the encouraging installation levels in Q2 and Q3 of this year, power purchase agreement (PPA) announcements have been somewhat subdued due to market headwinds. In the third quarter, only 3.1 GW of PPAs were announced, representing a 55% drop from the same period in 2022.
Project Pipeline Breakdown:
- Solar continues to dominate the project pipeline, accounting for 58% of clean power capacity under development.
- Battery storage and land-based wind each represent 15% of the pipeline.
- Offshore wind contributes 12% to the project pipeline.
The report sheds light on the impact of project delays, revealing that over 56 GW of clean power capacity, including 16,639 MW of projects expected to come online during the first three quarters of 2023, has been delayed since the end of 2021. Solar projects appear to be the most impacted, accounting for 67% of all delays. On average, projects face delays of 14 months, illustrating the importance of addressing these delays to meet energy targets.
In the third quarter of 2023, solar comprised 59% of all PPA announcements, demonstrating its strong position in the clean energy landscape. Land-based wind represented 32% of PPA announcements, further emphasizing the industry’s interest in diversified clean power sources.
The United States has made significant progress in clean energy, with cumulative operating clean power capacity now exceeding 243 GW. This capacity represents 16% of total electricity generation, highlighting the industry’s role in reducing greenhouse gas emissions and fostering a sustainable energy future.
California, renowned for its leadership in clean energy, stands at the forefront, accounting for 1,900 MW (34% of clean power commissioned in Q3). Texas and Arizona closely follow, with 949 MW and 516 MW, respectively.
Jason Grumet, CEO of the American Clean Power Association, underscores the undeniable demand for American clean energy. He emphasizes that, despite facing some near-term challenges, the sector continues to grow on a healthy, long-term trajectory. While a scaled-down version of the report is available to the public, ACP membership provides access to the comprehensive Clean Power Quarterly Market Report for Q3 2023.
Reporting by Emad Martin