The American Clean Power Association’s (ACP) Clear Energy Annual Market Report 2021 reveals that wind, utility {solar} and battery storage energy capability within the U.S. topped 200 GW after 28.5 GW of unpolluted energy tasks got here on-line in 2021.
No matter this milestone, installations have been flat when in comparison with 2020 ranges as a result of a number of coverage headwinds going through the wind and {solar} sectors. ACP discovered that sustaining final yr’s mission quantity would supply solely 35% of what’s wanted to achieve a net-zero grid by 2035.
“Regardless of latest development traits, unrelenting challenges from the pandemic and world provide chain points slowed clear energy development. Roughly 10 GW of unpolluted energy capability initially anticipated on-line in 2021 have been delayed due to varied coverage headwinds,” observes Heather Zichal, ACP’s CEO.
“Seeking to 2022 and past, the uncertainty of tax credit for renewable energy tasks, the supply of {solar} panels, provide chain points and inflation are all anticipated to have a regarding impression on our potential to ship development,” she provides. “Additional, continued and arguably heightened uncertainty led to by challenges to present commerce precedent like this yr’s Division of Commerce inquiry into {solar} module tariffs are already taking a toll as we see tasks canceled and delayed.”
Clear energy dominated new energy capability additions in 2021. A complete of 594 tasks got here on-line, representing 81% of all new energy capability installations. And extra is on the way in which, as long as constraints might be eased. On the finish of the yr, there have been 303 tasks below building and 390 in superior growth. Clear energy applied sciences now ship 13% of the nation’s electrical energy – the equal of powering over 56 million houses.
Nevertheless, the nation confronted a downward development in transmission infrastructure, with solely 386 miles of transmission traces being in-built 2021. Transmission is important to sustaining a dependable electrical energy grid and to integrating renewable energy assets extra effectively. Current transmission additions are merely not enough to allow the clear energy transition, as clear energy tasks proceed to scale up. Transmission tasks in growth might ship a further 5,000 miles of traces by 2025.
Final yr was the second largest yr for wind installations after 2020 with 13,400 MW put in, bringing the full U.S. wind working capability to 135,843 MW. Regardless of this, land-based wind capability installations have been down as a result of greater than 5 GW of tasks being delayed for a wide range of causes together with provide chain challenges, transportation and logistics constraints, inflation inflicting greater commodity costs, and interconnection delays. General, wind remained the biggest renewable energy supply on the grid with utility operations in 41 states and Puerto Rico.
The U.S. utility {solar} sector put in a document 12,433 MW of capability in 2021, bringing whole cumulative working capability to 60,733 MW. {Solar} capability installations grew by 20% year-over-year, though over 6 GW of tasks have been delayed in 2021. Delays have been as a result of provide chain constraints and commerce boundaries. {Solar} imports into the U.S. fell 18% as a result of regulatory boundaries that are anticipated to hinder future trade development.
The battery storage market noticed its largest yr on document with builders bringing 2.7 GW on-line in 2021, the primary yr of multi-GW battery storage capability installations within the U.S. General there at the moment are 4.7 GW of battery storage on-line.
Greater than 415,000 People make up the wind, {solar} and energy storage workforce throughout all 50 states. The {solar} sector makes up the biggest share of unpolluted energy employment with greater than 231,000 estimated majority-time staff. The wind sector employed about 116,800 staff, whereas the rising battery storage market employed roughly 66,700 staff.
The report finds the 594 clear energy tasks introduced on-line in 2021 signify roughly $40.6 billion {dollars} in funding. Since 2000, whole mission funding within the clear energy sector is an estimated $392 billion throughout the U.S.
Clear energy additionally supplied practically $2.5 billion funding into native communities; final yr alone, the clear energy trade paid an estimated $1.2 billion in state and native taxes and practically $1.3 billion in lease funds to landowners throughout the nation.
The report additionally reveals {solar} and wind prices have fallen 71% and 47% respectively within the final 10 years. Primarily based on evaluation within the report, wind and {solar} provide the bottom value of any technology kind in most elements of the nation.
There are 35 states with at the least 1 GW of working wind, utility {solar} or battery storage capability. Texas leads all states with 45,301 MW of cumulative clear energy capability put in, adopted by California (23,434 MW), Iowa (12,341 MW), Oklahoma (11,050 MW) and Kansas (8,275 MW).
Texas added the most clear energy capability final yr with 7,690 MW, adopted by California (2,852 MW), Oklahoma (1,408 MW), Florida (1,382 MW) and New Mexico (1,374 MW).
In 2021, Texas led all states in land-based wind capability additions with 3,343 MW and utility scale {solar} capability additions with 3,768 MW. California led in battery storage additions, with 1,371 MW.
In the case of electrical energy technology, Texas led all states by producing over 116 million MWh of renewable electrical energy in 2021. Nevertheless, in the case of the share of whole electrical energy generated in a state, Iowa led with 55.8% of electrical energy generated from clear energy in 2021. Different high states for clear energy technology share embrace South Dakota (52.3%), Kansas (45.3%), Oklahoma (41.6%) and New Mexico (36%).
Enterprise demand for clear energy set a document as company patrons introduced a document 13.6 GW of latest clear energy contracts in 2021. Company patrons are enjoying an more and more essential position in serving to to scale up clear energy applied sciences by buying document quantities of unpolluted energy – 2021 was the primary yr through which non-utility patrons accounted for greater than half of introduced clear energy buy agreements.
Amazon (2,580 MW) and Meta (1,907 MW) lead energy buy agreements introduced in 2021, adopted by TotalEnergies (1,000 MW) because the third largest purchaser of unpolluted energy offtake agreements. In whole, 128 entities introduced PPAs in 2021.
NextEra Energy is the biggest proprietor of working clear energy, accounting for 14% of whole capability. Berkshire Hathaway Energy is available in second with over 13,400 MW on-line, about 7% of whole capability, and Avangrid is available in third with 7,796 MW on-line.
Berkshire Hathaway Energy and Xcel Energy maintained their high rankings as primary and quantity two high patrons of unpolluted energy. Berkshire Hathaway Energy delivers over 14.4 GW of unpolluted energy to its prospects throughout the West and Midwest areas of the nation. Xcel Energy has practically 11.8 GW of working clear energy accessible for its prospects. Southern California Edison rounds out the highest three with practically 10.1 GW of working clear energy purchases.
The offshore wind market took a number of important steps ahead in 2021 with the primary commercial-scale offshore wind mission, the Winery Wind (806 MW) mission, starting onshore building in November. South Fork Wind (132 MW) additionally acquired a document of resolution in November, permitting building to maneuver ahead earlier this yr. The trade set a document for offshore wind procurement as states and utilities introduced 8.4 GW of offshore wind procurement in 2021.
There are 18 tasks in growth which have secured offtake, totaling practically 17.5 GW. In whole, there are presently 26 energetic leases on the East Coast, stretching from Massachusetts to North Carolina in varied levels of growth.
Wind and {solar} tasks present important environmental advantages and long-term well being advantages. Wind and {solar} capability on-line via 2021 can keep away from an estimated 86 million vehicles’ value of carbon emissions, or 398 million metric tons of carbon dioxide annually. The carbon emissions financial savings can stop over $20 billion in climate-related damages annually. The roughly 38 GW of wind and {solar} energy capability below building on the finish of 2021 can cut back CO2 emissions by a further 70 million metric tons as soon as operational. That may carry whole emissions reductions from U.S. wind and {solar} energy to round 470 million metric tons per yr, whereas whole U.S. nation emissions totaled 5,222 million metric tons in 2020. For comparability, energy consumption within the U.S. produced roughly 4.5 billion metric tons of CO2 emissions in 2020.
Learn the complete report here.