[USA] FERC rejects MISO self-fund rule for merchant HVDC line upgrades

On April 29, 2022, the Federal Energy Regulatory Commission (FERC) voted 4-1 to reject the Midcontinent Independent System Operator’s (MISO) proposal to allow incumbent transmission owners in the region to pay for and profit on grid updates needed for merchant high-voltage direct current (HVDC) lines.[1] The proposal, filed in November 2021, centered around upgrades needed for merchant HVDC lines, which are paid for by entities using the line rather than utility customers. The proposal built on a similar FERC decision in 2019 that restored transmission owners’ option to self-fund network upgrades before interconnection customers are offered the chance to finance it. MISO argued that merchant HVDC line-related upgrades should be treated similarly to interconnection-related network upgrades because both types of projects require upgrades that would not be needed if not for the projects.

In its decision to reject MISO’s proposed self-fund rule, FERC said that MISO failed to show how the expansion of the self-fund rule to merchant HCDV line upgrades wasn’t discriminatory. According to FERC, the upgrades are not identical because MISO would not offer all available funding options to merchant HVDC developers when they haven’t secured injection rights[2]. Commissioner James Danly (R) dissented, saying that the other commissioners’ decision “denies the transmission owners’ right to receive a return on and of the capital costs of network upgrades, necessary upgrades, and transmission owner system protection facilities.”

[1] https://elibrary.ferc.gov/eLibrary/filedownload?fileid=2b8979ce-11e6-cb9e-856b-8077d7500000

[2] Injection rights are rights to inject capacity at a specified point on the transmission system.

[USA] PG&E announces comprehensive hydrogen study and demonstration facility

On May 2, 2022, Pacific Gas and Electric Company (PG&E) announced that it is launching a comprehensive end-to-end hydrogen study and demonstration facility to examine the potential of zero-carbon hydrogen as a renewable energy source.[1] Called Hydrogen to Infinity, the study will blend hydrogen and natural gas in a standalone transmission pipeline system. The facility will allow PG&E and its partners (Northern California Power Agency (NCPA), Siemens Energy, the City of Lodi, GHD Inc., and the University of California at Riverside) to conduct a study of different levels of hydrogen blends in a natural gas pipeline that is independent from its current natural gas transmission system. The 130-acre facility in Lodi, California will also allow for a controlled and safe study of hydrogen injection, storage, and combustion of different hydrogen blends in several end-uses. NCPA’s Lodi Energy Center power plant, located near Hydrogen to Infinity, will accept a hydrogen-natural gas blend for electric generation in the Siemens Energy 5000F4 Gas Turbine.

The project will focus on several areas, including technical, operational, and safety needs; market development; energy resiliency and flexibility; commercial and government partnerships; unprecedented functional test environment for ongoing research; and training environment for new technology. The utility is considering this facility being the centerpiece for a potential Northern California Hydrogen Hub.

[1] https://www.pge.com/en_US/about-pge/media-newsroom/news-details.page?pageID=66b8ed99-3175-48da-95d6-1a1fde0a4f18&ts=1651764930381

[USA] Rivian secures $1.5 billion in incentives from Georgia

The Georgia Department of Economic Development (GDEcD), in partnership with the Joint Development Authorities (JDA) of several counties, announced on May 2, 2022, that an Economic Development Agreement has been signed with Rivian Automotives to move forward on the company’s electric vehicle (EV) assembly plant at the East Atlanta Megasite.[1] The $5 billion plant is expected to produce 400,000 trucks and SUVs a year. Under the agreement, Georgia will provide $1.5 billion in state and local incentives and tax credits. For example, the state will fund a $62 million training center and a roughly $27 million training program.

To meet the terms of the agreement, Rivian is required to create 7,500 jobs, which are expected to pay an average annual salary of $56,000. Rivian must also spend the bulk of its $5 billion direct investment by the end of 2028. As part of this investment, the EV manufacturer must make more than $300 million in payments in lieu of taxes over 25 years to the JDA of Jasper, Morgan, Newton & Walton Counties. These payments will start in 2023 with a payment of $1.5 million and escalate in steps over 25 years. If employment falls 20% below the promised level, Rivian must make all of its payments at once. The company plans to start construction in summer 2022 and open in late 2024.

[1] https://www.georgia.org/sites/default/files/2022-05/rivian_eda_signed_05.02.2022.pdf

https://www.georgia.org/sites/default/files/2022-05/rivian_incentives_-_executive_summary.pdf

[USA] Florida Governor vetoes bill to revise net metering laws

On April 27, 2022, Florida Governor Ron DeSantis (R) vetoed House Bill (HB) 741/Senate Bill (SB) 1024, which proposed revising existing laws for net metering and was passed by the state legislature in March 2022.[1] Net metering is a tool that gives rooftop solar owners a credit for excess energy that they produce and send back to the grid. HB 741 would have directed the Public Service Commission (PSC) to adopt a new program for rooftop solar owners by 2029 that would change net metering requirements and have solar owners pay the full cost of electric service instead of being "subsidized" by non-net metering customers. The bill would have also allowed utilities to recoup fees by petitioning the PSC to ensure “that the public utility covers the fixed costs of serving customers who engage in net metering.” Governor DeSantis cited the potential cost increases in his rejection. The governor wrote that Florida “should not contribute to the financial crunch that our citizens are experiencing,” referring to nationwide inflation.

[1] https://www.flgov.com/wp-content/uploads/2022/04/4.27.22-Veto-Transmittal-Letter.pdf

[USA] Biden administration reverses Trump-era plan for the National Petroleum Reserve-Alaska

On April 25, 2022, the Department of the Interior announced that it has signed a new management plan for the National Petroleum Reserve-Alaska (NPR-A), a 23 million-acre area on Alaska’s North Slope.[1] The Bureau of Land Management (BLM) says that the plan “balances protection of special areas and wildlife habitat with responsible resource development.” The BLM had announced in January 2022 that it would review the integrated activity plan (IAP) for the area. The final decision reverses a Trump-era plan that had opened 82% of the NPR-A’s land to oil and gas leasing. The new plan reinstates the previous management plan, which was put into place by the Obama administration in 2013. The new IAP protects about half of the reserves lands, including caribou and avian habitats, from oil and gas leasing. It also includes new requirements for potential oil and gas drilling, such as revised operating standards to protect endangered species. The BLM has held a yearly oil auction in the NPR-A since 2010, with the exception of 2020 when oil and gas prices were low due to the pandemic.

[1] https://www.blm.gov/press-release/following-january-announcement-bureau-land-management-issues-record-decision-national

[USA] New York approves transmission contracts for Clean Path NY and Champlain Hudson Power Express projects

New York Governor Kathy Hochul (D) announced on April 14, 2022, that the New York Public Service Commission (PSC) approved contracts with Clean Path New York for its Clean Path NY (CPNY) project and H.Q. Energy Services for its Champlain Hudson Power Express (CHPE) project to deliver solar, wind, and hydroelectric power from upstate New York and Canada to New York City.[1] CPNY is scheduled to come online in 2027 and will connect resources in the upstate and western regions of the state to NYC. CHPE is expected to come online in 2025 and will deliver power from Canada. State officials said that by 2030, the two projects will reduce NYC’s need for fossil fuel generation by 50%. Governor Hochul said the approval of the contracts is "a major step forward” in achieving the state’s goal of producing 70% of its electricity from renewable resources by 2030. The projects are also expected to deliver up to $5.8 billion in overall societal benefits and $8.2 billion in economic development across the state.

[1] https://www.governor.ny.gov/news/governor-hochul-announces-approval-contracts-deliver-clean-renewable-electricity-new-york-city

[USA] OPG and TVA to partner on new nuclear technology development

Ontario Power Generation (OPG) and the Tennessee Valley Authority (TVA) announced on April 19, 2022, that they will collaborate to build small modular reactors (SMRs) at their Darlington and Clinch River sites, respectively.[1] The agreement allows the companies to coordinate their explorations into the design, licensing, construction, and operation of SMRs. The collaboration will not include exchanges of funding, but the agreement will be mutually beneficial by reducing the financial risks of innovating new technology while taking advantage of the company’s experience, the press release said. OPG and TVA are both government-owned utilities with fleets that include nuclear and hydroelectric. Both utilities are also actively exploring SMR technologies. OPG plans to deploy an SMR at its Darlington nuclear facility, the only location in Canada licensed for new nuclear with all environmental assessments completed. TVA holds the only Nuclear Regulatory Commission Early Site Permit in the U.S. for SMR deployment at its Clinch River site in Oak Ridge, Tennessee.

[1] https://www.tva.com/newsroom/press-releases/opg-tva-partner-on-new-nuclear-technology-development

[USA] Cleco to retrofit large Louisiana power plant with CCS

Louisiana Governor John Bel Edwards (D) and the President and CEO of Cleco Corporate Holdings announced on April 11, 2022, that Cleco will invest $900 million to reduce carbon emissions at the largest of its nine electric generation units in Louisiana, Madison-3 at Brame Energy Center in Lena, LA.[1] Currently, the plant is fueled 70% by petroleum coke and 30% by Illinois Basin coal. Cleco Power, which serves 291,000 customers in Louisiana, will retrofit the Madison-3 plant with carbon capture technology to remove 95% or more of the plant’s carbon emissions. Named the “Diamond Vault,” the project plans to store the captured carbon in deep geological formations beneath the power plant. The company estimates that the project will create 30 to 40 direct new jobs and an average of 1,100 construction jobs over a three-year period.

Cleco will receive a $9 million congressional appropriation to help cover the cost of a front-end engineering and design (FEED) study. Cleco plans to raise capital for the project through tax credits, Department of Energy grants, and private equity investment. Construction is projected to begin by the end of 2025, and commercial operation is expected to begin no later than 2028.

[1] https://www.opportunitylouisiana.com/led-news/news-releases/news/2022/04/11/gov.-edwards-cleco-announce-$900-million-emissions-reduction-project-at-central-louisiana-power-facility

[USA] Government agencies warn of new malware with implications for critical infrastructure

On April 13, 2022, the Department of Energy (DOE), the Cybersecurity and Infrastructure Security Agency (CISA), the National Security Agency (NSA), and the Federal Bureau of Investigation (FBI) released a joint Cybersecurity Advisory (CSA) warning of a newly discovered malware targeting the systems that control electricity and natural gas infrastructure.[1] The CSA said the new malware has a modular architecture and is able to conduct highly automated attacks against critical infrastructure. The CSA warns that it could enable lower-skilled cyber actors to emulate higher-skilled capabilities. The malware has a wide range of uses, including initial infiltration, reconnaissance, uploading malicious configuration or code to the targeted device, backing up or restoring device contents, and modifying device parameters.

In the announcement, the government agencies urged critical infrastructure companies, particularly those in the energy sector, to implement the CSA’s detection and mitigation recommendations. These recommendations include enforcing multifactor authentication for remote access and having a cyber incident response plan. The government announcement credited Dragos, Mandiant, Microsoft, Palo Alto Networks, and Schneider Electric SE with helping to discover and analyze the malware. Cybersecurity firms Dragos and Mandiant have also published their own respective reports on the malware.

[1] https://www.cisa.gov/uscert/ncas/alerts/aa22-103a

[USA] Biden invokes Defense Production Act to boost domestic battery manufacturing

On March 31, 2022, President Biden invoked the Defense Production Act (DPA) to spur domestic mining and processing of minerals used to make batteries for electric vehicles (EVs) and energy storage facilities.[1] The DPA is a Cold War-era law that gives the president significant emergency authority to bolster domestic industries.[2] The move is part of a two-part path designed to address rising energy costs caused by the Russian invasion of Ukraine; in addition to using the DPA, Biden ordered the release of up to 1 million barrels a day for six months from the Strategic Petroleum Reserve. According to the White House press release, the DPA will support lithium, nickel, cobalt, graphite, and manganese production and processing. The Department of Defense will “implement this authority using strong environmental, labor, community, and tribal consultation standards.” The White House statement also noted that the administration is considering using the DPA to address other parts of the energy sector.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/31/fact-sheet-president-bidens-plan-to-respond-to-putins-price-hike-at-the-pump/?utm_campaign=Press%2FMedia%20Outreach&utm_medium=email&_hsmi=208653202&_hsenc=p2ANqtz-_Q0ffmJOHAWL-D7Z5LZ4VFTUukayztJICXlTevL7e6II-icdY2-T-kjPVquu2pH3CCyJyxMsJ53deXsGO8Xs6ApKqCHkLboVha6umJvzJ2zQZfxe0&utm_content=208653202&utm_source=hs_email

[2] President Biden has previously invoked the DPA to respond to the COVID-19 pandemic. For example, Biden used the DPA to bolster vaccine supply.

[USA] SEIA survey: solar companies greatly impacted by Commerce tariff investigation

According to preliminary survey results released by the Solar Energy Industries Association (SEIA) on April 5, 2022, three-quarters of surveyed solar companies say that panel deliveries have been canceled or delayed since the Department of Commerce announced on March 28, 2022, that it was initiating a circumvention case against imports of solar goods from four Southeast Asian countries.[1] The Commerce investigation was prompted by a February 2022 petition from California-based solar panel assembler Auxin Solar. In the petition, Auxin Solar claims that manufacturers in Cambodia, Malaysia, Thailand, and Vietnam use parts made in China that otherwise would be subject to a tariff. The investigation may take up to a year, and suppliers have indicated that they may stop shipments from those countries until a final ruling is issued as the ruling could result in retroactive import duties.

The SEIA survey compiled responses from more than 200 solar companies, which ranged from manufacturers to utility-scale installers. Half of the respondents said that 80% or more of their 2022 project pipeline is at risk of delay or cancellation. In addition, two-thirds of survey respondents said that at least half of their workforce is at risk of being laid off, while another third said their entire workforce is at risk. SEIA is now calling for the Department of Commerce to issue a negative preliminary decision on the case.

[1] https://www.seia.org/news/survey-solar-deployment-hammered-meritless-trade-case-us-climate-goals-jeopardy

[USA] PG&E announces expansion of Enhanced Powerline Safety Settings technology following successful wildfire prevention in 2021 pilot

On April 5, 2022, Pacific Gas and Electric Company (PG&E), which serves over 5 million households in the northern two-thirds of California, announced that it will broaden the use of its Enhanced Powerline Safety Settings (EPSS) technology to all distribution powerlines in high fire-threat areas in 2022.[1] Launched as a pilot in July 2021, EPSS automatically shuts off power within one-tenth of a second if a potential threat to the electric system, such as a fallen tree branch, is detected. According to the press release, as of the end of 2021, the system successfully reduced reportable ignitions by 80% on affiliated circuits in High Fire-Threat Districts (HFTDs) compared to the previous three-year average across more than 11,500 HFTD miles of distribution lines.

The utility intends to expand the program to 25,500 HFTD miles of distribution lines within the company’s service area and in select adjacent areas. According to the company, unlike Public Safety Power Shutoffs (PSPSs), which are a last resort when severe weather conditions are forecast, EPSS is effective any time when dry fuels make powerline faults more likely to start a fire. The EPSS will be paired with a more surgical approach to reducing the frequency and duration of outages and the number of customers impacted. PG&E also said it intends to increase the resources available to customers affected by any shutoffs.

[1] https://www.pge.com/en_US/about-pge/media-newsroom/news-details.page?pageID=d8b31ca1-2f94-4d86-ba5b-f62d87b063fc&ts=1649362205969

[USA] SPP reaches 90% renewables for the first time

Southwest Power Pool (SPP), a grid operator that covers 14 states in the central U.S., announced on March 29, 2022, that it had relied on renewables for 90.2% of the energy needed to meet electricity demand for the first time.[1] The record was set at 2:42 a.m. Central time on March 29, 2022, and beat the previous record of 87.5% set on May 8, 2021. This marks the first time a regional transmission organization (RTO) has served more than 90% of its load with renewables. 88.5% was served by wind alone, beating the previous wind penetration record set on May 8, 2021, of 84%. In a statement, SPP Senior Vice President of Operations Bruce Rew said, “In a decade’s time, our region has gone from thinking of 25% renewable-penetration levels as nearly unreachable to a point where we regularly exceed 75% without reliability concerns. We’re able to manage wind generation more effectively than other, smaller systems can because we’ve got a huge pool of resources to draw from.”

The grid operator also set new wind and renewable production records. At 9:25 p.m. Central time on March 28, 2022, the SPP footprint produced 23,802 MW of renewable energy, beating the previous record of 21,820 MW set on February 15, 2022. And at 10:34 p.m. the same day, wind production reached a record 22,915 MW, surpassing the previous record of 21,820 MW from February 15, 2022.

[1] https://www.spp.org/newsroom/press-releases/spp-sets-regional-records-for-renewable-energy-production/

[USA] Biden’s proposed budget for FY 2023 includes $44.9 billion for clean energy

On March 28, 2022, President Joe Biden unveiled his proposed $5.8 trillion budget for fiscal year (FY) 2023, which includes $3.3 billion for clean energy growth.[1] Biden’s proposed budget includes increasing the Department of Energy’s (DOE) budget by 7.1% to $48.2 billion, up from $45 billion in FY 2022. The increase partly reflects spending required by the 2021 Infrastructure Investment and Jobs Act (IIJA) and includes $200 million for a new Solar Manufacturing Accelerator program to help spur domestic solar equipment production. The proposal also proposes $502 million to weatherize and retrofit low-income homes. This includes $100 million for a new Low Income Home Energy Assistance Program (LIHEAP) Advantage pilot to electrify low-income homes and $260 million to support energy efficiency improvements to Department of Agriculture (USDA)-assisted multifamily homes. In addition, Biden’s proposed budget would provide $150 million to electrify Tribal homes and transition colleges and universities to renewable energy. It also includes $80 million for a new Grid Deployment Office to retrofit the grid.

[1] https://www.whitehouse.gov/wp-content/uploads/2022/03/budget_fy2023.pdf

[USA] DTE and Lyft partner to incentivize EV adoption

On March 29, 2022, Detroit-based DTE Energy announced a partnership with Lyft, a rideshare provider, to incentivize Lyft’s drivers in its footprint to purchase or lease an electric vehicle (EV).[1] Through DTE’s Charging Forward program, Lyft’s drivers who adopt EVs will receive up to $5,000.  The utility is providing $2,000 as a rebate for Lyft drivers that purchase or lease an EV. The remainder of the incentive will be split into four quarterly payments of $750 if the driver completes 200 rides per quarter.

The partnership with Lyft is the latest piece of the Charging Forward program, which began by offering charger rebates to customers and is now expanding into ride-hailing. DTE invests more than $1 billion annually to improve electric reliability on the grid and increase capacity for growing EV adoption. According to the press release, DTE’s partnership with Lyft aims to close the gap of equitable access to EVs. The program is currently open, and eligible drivers must apply by September 30, 2022.  

[1] https://www.newlook.dteenergy.com/wps/wcm/connect/dte-web/home/service-request/residential/electric/pev/pev-res-charge-frwd

[USA] AEP announces completion of the 998 MW Traverse Wind Energy Center, the largest single wind farm in North America

On March 21, 2022, American Electric Power (AEP) announced that its 998 MW Traverse Wind Energy Center in north central Oklahoma went online, becoming North America’s largest wind farm built at one time.[1] The project is now providing clean energy to customers in Arkansas, Louisiana, and Oklahoma. The Traverse Wind Energy Center consists of 356 turbines and is expected to generate 3.8 million MWh annually for AEP subsidiaries Public Service Company of Oklahoma (PSO) and Southwestern Electric Power Company (SWEPCO). The project is the final addition to the three-part North Central Energy Facilities, which will generate a total of 1,484 MW of clean energy and could result in $3 billion in electricity cost savings over the next 30 years. Sundance and Maverick, the other two facilities, began commercial operation in 2021. The projects represent a $2 billion investment and are a major part of the $8.2 billion in regulated renewables AEP plans to deploy by 2026. The projects are also part of the approximately 16,000 MW of wind and solar that AEP plans to roll out by 2030 as it strives to achieve net-zero carbon emissions by 2050. AEP also plans to invest nearly $25 billion pumped into its transmission and distribution systems for modernization.

[1] https://www.prnewswire.com/news-releases/traverse-wind-energy-center-begins-delivering-savings-to-customers-301506631.html

[USA] Virginia Regulators approve Dominion’s 1 GW renewable energy expansion

On March 16, 2022, the Virginia State Corporation Commission approved Dominion Energy’s plans for a nearly 1,000 MW renewable energy expansion.[1] The expansion includes 15 Dominion Energy Virginia projects and power purchase agreements (PPAs) with 24 other third-party developer projects. Among these projects is Dominion Energy Virginia’s largest solar-plus-storage project to date. The Dulles Solar and Storage project, located at Dulles International Airport near Washington, D.C., will pair 100 MW of solar generation with 50 MW of storage. According to the press release, Dominion’s new projects will generate more than $880 million in economic benefits across Virginia and will support nearly 4,200 jobs. The projects are expected to come online in 2022 and 2023 and will add about $1.13 to the average residential customer’s monthly bill.

The approval is Dominion’s second requested expansion following the passage of the 2020 Virginia Clean Economy Act, which mandated the full decarbonization of Dominion’s generation fleet by 2045.[2] The law requires Dominion to build out 16,100 MW of wind and solar capacity by 2035. Dominion is now nearly halfway to the targets with about 7 GW of solar in operation or under development.

[1] https://news.dominionenergy.com/2022-03-16-Significant-Expansion-of-Solar-and-Energy-Storage-Approved-for-Dominion-Energy-Virginia-Customers

[2] https://www.utilitydive.com/news/virginia-approves-1-gw-renewable-energy-expansion-by-dominion-energy/620540/

[USA] ACPA and RENEW complaint claims ISO-NE’s market rules are biased toward natural gas generators

In a complaint filed with the Federal Energy Regulatory Commission (FERC) on March 15, 2022, the American Clean Power Association (ACPA) and RENEW Northeast argue that ISO New England (ISO-NE) gives some natural gas-fired power plants an unfair advantage in the grid operator’s capacity and operating reserves markets by assuming that these resources will always have fuel supplies and be able to operate.[1] By comparison, ISO-NE considers how much capacity other resource types can consistently deliver, resulting in renewable resources having accredited capacity below their nameplate capacity. The complaint says that about 9.2 GW of pipeline-supplied gas-fired capacity in New England lacks a backup fuel source. This equals about 28% of the capacity that cleared the grid operator’s most recent capacity auction. The renewable energy trade groups claimed that the grid operator’s preferences for natural gas-fired generators lowers capacity, real-time reserve, and real-time energy prices, thereby creating barriers to renewable energy and energy storage facilities.

ISO-NE is starting a stakeholder process to consider how Effective Load Carrying Capability (ELCC) techniques could be used in quantifying resource capacity contributions to regional resource adequacy, which could address some of the complaint’s concerns. However, the new methodology would be in place until June 2028, so the complaint requests that FERC require ISO-NE to change its capacity accreditation rules by mid-2027.

[1] https://cleanpower.org/wp-content/uploads/2022/03/2022-03-15-Full-complaint-FINAL.pdf

[USA] Report: Reconductoring could lower costs and accelerate decarbonization

According to a new report released on March 15, 2022, by Grid Strategies, reconductoring and rebuilding existing transmission pathways using Advanced Conductors could lower costs and accelerate the decarbonization of the power grid.[1] The report, titled Advanced Conductors on Existing Transmission Corridors to Accelerate Low Cost Decarbonization, was prepared for the American Council on Renewable Energy (ACORE), CTC Global Corporation, Lamifil Inc North America, Natural Resources Defense Council, Taihan Electric USA Ltd., and TS Conductor Corporation.

Roughly 70% of transmission and distribution lines are well into the second half of their 50-year life expectancy, and some lower voltage components are over 100 years old. New transmission construction is needed to interconnect large amounts of renewable energy, but these projects can take more than a decade to bring online. Outfitting existing transmission infrastructure with advanced conductors can quickly create more capacity, reduce emissions, save consumers money, and boost resiliency. The report makes several recommendations, such as requiring transmission service providers to consider advanced conductors in generator interconnection planning rules, that the Federal Energy Regulatory Commission (FERC) could adopt in its upcoming Notice of Proposed Rulemaking (NOPR) on transmission planning, cost allocation, and interconnection queue reform. The report also includes recommendations for transmission planners and owners, public utility commissioners and legislators, and the Department of Energy (DOE).

[1] https://acore.org/wp-content/uploads/2022/03/Advanced_Conductors_to_Accelerate_Grid_Decarbonization.pdf

[USA] Report: solar prices increased in 2021 due to supply chain challenges, other issues

According to a new report released on March 10, 2022, by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, U.S. solar prices increased in 2021 due to supply chain challenges, trade actions, and legislative uncertainty.[1] In 2021, the U.S. installed 23.4 GW of solar PV, reaching 121.4 GW of total installed capacity. Solar accounted for 46% of all new electricity-generating capacity added in the US, and 2021 marked the third year in a row that solar accounted for the largest share of new capacity. However, the report found that prices increased 18% year over year in 2021 for fixed-tilt utility-scale solar projects and 14.2% for single axis tracking projects in Q4 2021. Additionally, roughly one-third of all utility-scale solar capacity scheduled for Q4 2021 was delayed by at least a quarter. About 13% of capacity scheduled for completion in 2022 has been delayed by a year or more or canceled.

Over the last six months, Wood Mackenzie has decreased near-term solar forecasts by 11 GW, or 19%, due to ongoing challenges. If Congress passes a long-term extension of the solar investment tax credit (ITC), new manufacturing tax credits, and other clean energy incentives, solar installations will increase by 66% over the next decade compared to baseline projections. Without action from Congress, Wood Mackenzie forecasts that solar capacity would only reach 39% of what’s needed to reach President Biden’s 2035 decarbonization goal.

[1] https://www.seia.org/news/solar-growth-trajectory-remains-uncertain-federal-legislation-stalls