According to the report, rising demand for electricity, increases in extreme weather events, and delays in connecting new resources to the grid threaten stability across the U.S.

“In response to surging demand and increasing extreme weather events, we must embrace a diverse energy mix and avoid sidelining any market-ready generation,” said �����Ƶ (ACP) Association Vice President of Markets & Transmission Carrie Zalewski.

“We need to tap into the 1,000 GW of storage-hybrid facilities in the queue that can deliver low cost, flexible resources. Adding new transmission infrastructure and a diverse energy mix need to be top priorities.”

On enhancing resiliency, the report found that battery storage is outperforming expectations, providing flexibility to balance solar and wind variability, particularly during extreme weather and peak demand periods.

“Energy storage is having an outsized effect on enhancing grid reliability.��ERCOT is helping make that case,” Zalewski said.��“In the past year, during both winter and summer months, significant energy storage capacity additions provided ERCOT with the ability to navigate moments of stress on the grid while helping keep the lights on and produce hundreds of millions in energy cost savings in the process.”

Report Highlights:

• 51 percent jump in planned transmission projects over the next decade, with more than 28,000 miles of new transmission reported in planning stages, a much-needed step in expanding the grid to support renewable energy integration.
• 15 percent increase in summer peak demand and an 18 percent increase in winter peak demand over the next 10 years.
• Both figures are considerably higher than NERC’s last assessment and driven largely by surging energy needs from data centers.

###

• $750 million in energy cost reductions in the Summer of 2024��

WASHINGTON DC, December 9, 2024 — The �����Ƶ Association (ACP) today released an analysis highlighting how recent significant additions of energy storage capacity over the past year in Texas has resulted in lower energy costs for consumers, the ability to avoid conservation appeals, and has enabled the power grid to better navigate extreme weather events.����

Key findings include:����

• Energy demand in Texas has skyrocketed over the past two years.������

• Large capacity additions of energy storage (5 GW) over the course of one year in Electric Reliability Council of Texas (ERCOT) region helped outpace rising energy demand.��

• Energy storage capacity additions contributed to $750 million in cost reductions, creating savings for consumers.����

• Energy storage capacity additions helped prevent conservation appeals during Summer 2024 and helped ERCOT navigate prolonged moments of stress that would traditionally threaten the grid with power outages.��

ERCOT has in maintaining reliability at critical moments in a cost-efficient manner.����

“Energy storage is doing the job it was designed to do, delivering affordable power for Texas during the most critical moments, whether historic heatwaves or winter storms,” said Noah Roberts, VP of Energy Storage for ACP. “This flexible resource is both boosting the reliability of the grid and delivering cost savings for families and businesses. It has truly been a game changer for the state and ERCOT’s ability to navigate moments of stress on the power grid.”����

“Significant load growth in ERCOT over the last two years has created record-setting electricity demand in the state and new stresses on the power grid,” said John Zahurancik, Fluence President, Americas. “During this time of growing demand, we’ve seen a rapid deployment of battery storage capacity across the state, increasing 5X from 2022 to 2024 and delivering more than $750 million in savings for consumers. As this analysis clearly demonstrates, these battery storage resources are central to an all-of-the-above approach to energy independence, and a commonsense solution that brings greater flexibility, resilience, and affordability to the state of Texas.”��

“Texas continues to experience strong growth and unprecedented energy demand. Battery storage is essential in meeting this demand by providing cost-efficient energy when it is most needed,” said Eric De Caluwé, Managing Director of Flexible Generation for ENGIE North America. “As storage developers and operators, we are dedicated to ensuring that Texas residents and businesses have reliable electricity. Battery storage lowers consumer costs by storing surplus energy and releasing it during peak demand, avoiding the need for more expensive resources. These systems are highly flexible and respond quickly, significantly enhancing grid reliability during critical moments.”��

Texas has seen skyrocketing energy demand in recent years due to increasing population, electrification, and new industrial energy users. The state set records for electricity demand in both 2023 and 2024. This rise in demand, coupled with increasing weather events, has resulted in significant stress placed on the power grid in Texas.��

However, in the past year alone, ERCOT has deployed 5 GW of energy storage. This has contributed to the state’s ability to outpace rising energy demand and help avoid conservation appeals and power outages.����

Texas and its independent market operator, ERCOT, has thus served as a prime example of how rapidly our energy systems must evolve in the United States to be able to consistently deliver reliable and affordable energy to consumers—especially when Texans need it most.���� ��

Texas is expected to continue adding large amounts of energy storage capacity to its grid, with nearly 4.5 GW currently under construction and an additional 7.3 GW in the pipeline.����

To read more, access ACP’s analysis HERE.����

The Minnesota Energy Infrastructure Permitting Act makes important changes to reduce redundancies and impressive efficiencies to the state’s permitting process at the Minnesota Public Utilities Commission (MN PUC), the agency responsible for approving permits for large-scale energy projects, including wind, solar, and battery storage. Last year, Minnesota passed a law requiring its utilities to generate or procure 100% of retail sales for public utility customers from carbon-free resources by 2040, 55% of which must be renewable (i.e., wind, solar, hydro, biomass) by 2035.

“The Energy Infrastructure Permitting Act will be critical to meeting Minnesota’s goal of 100% carbon-free electricity by 2040,” said Erika Kowall, Director, Midwest State Affairs, �����Ƶ Association (ACP). “Minnesota already ranks tenth in the nation for clean energy production, and Governor Walz’s leadership on this issue will deliver real value to Minnesotans moving forward. ACP looks forward to continuing to work with Minnesota leaders to help unleash the state’s full clean energy potential.”

Clean Grid Alliance (CGA), which works to advance renewable energy in the Midwest, was a strong advocate for the permitting package. “Siting and permitting is the largest roadblock to deploying renewable projects across the Midwest, and the reforms in this package ensure Minnesota’s policies demonstrate the state’s readiness to welcome the clean energy transition,” said Beth Soholt, Executive Director, CGA.

At the same time, developers struggled mightily to plug in projects this year as supply chains remained tight, detentions kept many solar projects from receiving panels, and grid connection issues delayed projects from starting to deliver power. Overall, this points to a slowdown from record levels seen in 2021 and 2020. So, paradoxically, while the industry is well positioned for accelerated future growth, 2022 will not live up to expectations.

With that in mind, let’s look at key clean energy highlights from this past year.

Passage of historic clean energy investment��
The Inflation Reduction Act (IRA) represents the single largest investment in renewable power and climate action in our �Բ��پ��Dz�’s history.�� A key feature of this legislation is the extension of production and investment tax credits through 2024 before transitioning to a technology-neutral tax credit. The latter tax credit will remain in place until 2023 or when electric-sector emissions fall to 75% of 2022 levels, whichever is later. For the first time, energy storage is eligible for the investment tax credit, while domestic manufacturing of clean energy components is incentivized through additional tax credits.

ACP’s initial analysis of the IRA demonstrates the enormity of the legislation’s impact on the �Բ��پ��Dz�’s clean energy landscape. We expect that the IRA will deliver an estimated 525 to 550 gigawatts (GW) of new, utility-scale clean power from 2023-2030. Building on the existing clean power fleet, there will be roughly 750 GW of clean power capacity operating in 2030.��

Beyond providing clean and reliable energy, projects installed thanks to the IRA will have outsized benefits on their surrounding communities. Building 525 to 550 MW of new capacity will generate between $550 to $600 billion in capital investment. More broadly, construction of these projects is expected to generate over $900 billion in economic activity and add nearly $500 billion to U.S. GDP across the decade. After construction, ongoing maintenance and operations will contribute over $14 billion to U.S. GDP each year while generating nearly $29 billion in annual economic activity.

American made clean power
Between the passage of federal incentives��and the end of November, ACP is tracking more than $40 billion of new utility-scale clean energy investment announced. Alongside private investment, 20 new domestic manufacturing facilities supporting utility-scale clean energy have been announced, bringing with them 7,000 new American jobs.��

Throughout 2022, numerous clean energy manufacturers have announced plans for new U.S. facilities, strengthening a future made-in-American clean power supply chain. For instance, First Solar, a leading American tier 1 solar manufacturer, is investing heavily in its manufacturing capabilities throughout the U.S. The company is investing $1 billion in a new 3.5 GWdc manufacturing facility in the Southeast and expanding its footprint in Ohio with a $185 million investment to increase manufacturing capacity in the state by 0.9 GWdc. In total, the solar manufacturer expects to have a workforce of over 3,000 in four states, while supporting 15,000 indirect and induced jobs by 2025.1��

Once-abandoned manufacturing sites are also getting new life thanks to clean energy manufacturing companies. In Iowa, TPI Composites, a wind turbine maker, closed its doors in 2021, cutting 700 jobs. Now, thanks in part to support from the IRA, TPI Composites and General Electric have signed a 10-year agreement, allowing turbine blade production to resume in 2024, bringing Iowans back to work. Nextracker and BCI Steel have also announced plans to renovate the abandoned Bethlehem Steel factory in Pittsburgh, PA. The Pittsburgh facility is Nextracker’s third partnership with a steel manufacturing partner in 2022 as part of the company’s commitment to rebuilding America’s steel and solar supply chains.��

The IRA has also given many utilities the opportunity to reduce electricity costs for customers, providing over $2.5 billion of consumer savings to 15 million Americans. Companies explicitly tied these savings to federal incentives that make new project investment less expensive, meaning utilities can rely less on customer rate increases to fund projects.

Historic offshore wind leases across our �Բ��پ��Dz�’s coasts
The Bureau of Ocean Energy Management (BOEM) held three offshore wind lease auctions in 2022. The first, held in February, took place in the New York Bight, a stretch of ocean between New York and New Jersey. The auction, for six lease areas with the potential for at least 5.6 GW of capacity, lasted three days and drew winning bids totaling roughly $4.37 billion. This record-breaking offshore wind lease auction highlights the strong opportunities for developers in the region.��

BOEM held two additional offshore wind lease auctions in 2022. In May, an auction for two lease areas in the Carolina Long Bay region resulted in winning bids totaling $315 million. Combined, the two areas have a potential capacity of at least 1.3 GW. This lease auction represents the southernmost lease sale on the East Coast, bringing more clean, reliable offshore wind energy to the Carolinas.

In December, BOEM held the �Բ��پ��Dz�’s first offshore wind lease auction on the West Coast. The lease auction, for two leases off Northern California and three leases off the Central Coast, lasted two days and drew winning bids totaling $757 million. Deep waters in these lease areas necessitate the use of floating offshore wind. The U.S. is primed to be a leader in the development of floating offshore wind��technology.

Delays, delays, delays
Despite expected future investment and growth, the industry currently faces supply chain and trade roadblocks stagnating new installations. ACP is tracking clean power project delays happening since the end of 2021 and the volume is staggering – over 36 GW of clean power are delayed. These are projects that should otherwise be online and delivering clean power to Americans.

More than 8 GW of projects have experienced multiple delays. Delays are setting many projects back by more than just a few months; of the 14.2 GW of delayed capacity that was expected online in the third quarter of the year, only half of it is expected to come online by the end of the year. On average, delays are well over six months.

Solar projects make up 63% of the delayed capacity, primarily due to an inability to obtain panels as a result of continuing trade restrictions. Wind accounts for just less than a quarter of all delayed capacity. Wind delays are caused by ongoing supply chain constraints and grid interconnection delays. Battery storage has been the least affected, continuing to achieve record quarter after record quarter for new installations, but has not gone totally unimpacted. Nearly 5 GW of battery storage capacity, primarily paired with delayed solar projects, has experienced delays.����

Historic clean power projects begin operations��
Despite headwinds, clean energy developers have been able to bring online multiple historic projects this year. One project that cannot go without mention is Traverse Wind, one of the largest single phase wind projects to be commissioned in the country to date. The 998 MW Oklahoma project, developed by Invenergy, came online in the first quarter of the year. There are now 356 General Electric turbines operating at the site and providing power to the Southwestern Electric Power Company and Public Service Company of Oklahoma. American Electric Power Company (AEP) chairman, president, and CEO Nicholas K. Akins stated that the project’s completion was a “significant milestone in [AEP’s] efforts to provide clean, reliable power to [their] customers while saving them money.”

NextEra’s Wheatridge Renewable Energy Facility, which came online this year in Oregon, is a prime example of the growth of hybrid clean energy projects. Wheatridge, featuring 300 MW of wind capacity, 50 MW of solar, and 30 MW/120 MWh of battery storage capacity, is the largest fully operational hybrid facility in the U.S. combining all three technologies. The project is playing a big part in getting Portland Gas and Electric, who is purchasing the output, closer to their goal to��reduce greenhouse gas emissions from power served to customers by at least 80% by 2030.��

Battery storage has been growing rapidly over the past few years, in part because of increasingly large standalone projects commissioning. One example of that is the Crimson Storage project, the largest single-phase battery project currently operating. The project, located on Bureau of Land Management (BLM) land in the California desert, was developed by Axium Infrastructure and Canadian Solar. Two California utilities, Southern California Edison and Pacific Gas and Electric, hold long-term contracts with the project, thanks in part to reliability mandates made by the California Public Utilities Commission.��

As the year comes to a close, the clean energy industry has much to celebrate, yet lots of work still left to do.�� More than 216 GW of clean energy are currently operating and powering homes and businesses across the nation. With the passage of the IRA, historic investment is poised to help the industry exponentially increase annual deployments while building out a domestic supply chain.�� However, several roadblocks remain. To realize the full power potential of the clean energy industry in the coming year, Washington must focus its efforts on improving trade policies, enacting common sense permitting reform, and finalizing effective tax implementation.����And if these important policies come to fruition, clean power will continue to grow across the country and power more homes and American businesses, create jobs and spur a new era of American manufacturing.

In just the last three months, over $40 billion of new grid-scale clean energy investments have been announced, according to ACP’s new Clean Energy Investing in America report. This amount is equal to the total investment estimated for all clean energy projects installed in 2021.

Across the country, in red and blue states, this results in jobs and more affordable energy. Twenty new clean energy manufacturing facilities have been announced in the last three months, creating 7,000 new jobs. From Wisconsin to Texas, and Alabama to Colorado, the clean energy industry is building utility-scale projects and manufacturing facilities.

Other key highlights of the Clean Energy Investing in America report include:��

• $2.5 billion in consumer savings  ��
• Over 13 gigawatts of new clean energy capacity  ��
• 12 new solar manufacturing facilities �į ��
• 6 new grid-scale battery storage manufacturing facilities ��
• 1 reopening and 1 expansion of wind power manufacturing facilities �į  �į��

The clean power industry’s job-creating investments are already underway across America. Here are just a few of the over $40 billion in domestic clean energy investments ACP members are making across America:����

• recently announced plans to build a new U.S. solar manufacturing facility, which will create up to 1,500 clean power jobs and support the creation of a domestic solar supply chain. ����
• announced that an Iowa wind blade production plant will reopen, bringing up to 800 jobs to the region.��
• plans to build a 460-megawatt solar project in Minnesota that will replace a coal-fired power plant.��
• projects long-term customer savings of nearly $2 billion.��
• announced plans for its first utility-scale battery installations at solar farms in Wisconsin.��
• Florida plans to decrease rates, saving customers $56 million annually.��
• , the only solar panel manufacturer in Texas, plans to more than triple its capacity to 1 gigawatt annually and double its staff by 2024.��  
  ��

The clean power industry is investing in our economy, powering jobs, and reducing emissions. Federal incentives of the past year are only beginning to take effect, but they are already laying the foundation to make America a manufacturing powerhouse, help reduce our dependence on foreign energy sources to meet our domestic needs and ensure an energy transition for all.

To keep up the momentum and ensure the full potential of these investments and manufacturing facilities, ACP urges the Administration and Congress to continue improving trade policies, enacting common sense permitting reform, and finalizing effective tax implementation. Only then can we – and will we – be able to realize the potential these significant investments have unlocked. ��

Paired with the Inflation Reduction Act, the IIJA provides the policy foundation for the clean energy industry to begin rapidly developing and scaling projects across the country. Along with significant regulatory changes, the $65 billion in new IIJA funding now being distributed across the country has the potential to transform the way we generate and deliver power in the United States.��

But the federal government must continue to solidify guidance and make available federal dollars to ensure that the clean energy industry – and Americans who consume clean energy – feel the benefits promised by the IIJA. ��

As we look back at the year since the IIJA passed, here’s a recap of the legislation’s impact on the clean energy sectors thus far and ACP’s recommendations for future implementation:��

Transmission��

While the rapid buildout of transmission is critical for the energy transition, transmission infrastructure has been difficult to build in the United States because of lengthy permitting processes. The transmission-specific provisions in the IIJA are poised to provide support for this critical industry by: ��

• increasing resilience and reliability of existing transmission lines��
• supporting the construction of interstate transmission lines��
• assisting with planning and permitting challenges��
• resolving disputes between states that enable nationally significant projects to proceed��

In January, consistent with new funding and regulatory authority in the IIJA, the U.S. Department of Energy (DOE) launched the – spearheaded by its new Grid Deployment Office – to encourage the development of high-capacity electric transmission lines. As part of that initiative, DOE released a Notice of Intent (NOI) that identifies programs to develop transmission as rapidly as possible, as well as NOIs on implementation of the $2.5 billion Transmission Facilitation Program (TFP) and joint implementation of $10.5 billion across three IIJA grant programs collectively termed the Grid Resiliency and Innovative Partnerships (GRIP) programs.����

In November, the DOE issued its first funding announcements for the TFP and over $3 billion in GRIP grant funding – with the application process commencing this year, and awards issued in 2023. ����

ACP urges the DOE to continue to move quickly to unlock the full funding from the IIJA and ensure that these programs are used in conjunction with DOE’s other authorities to help get transmission development started in as many places as possible, as soon as possible.��

Energy Storage��

The IIJA has earmarked significant funds for further investment in energy storage. These funds include $6 billion in grants from DOE’s Office of Energy Efficiency and Renewable Energy for processing, manufacturing and recycling battery materials, along with $505 million in grants or cooperative agreements from DOE’s Office of Clean Energy Demonstration to carry out energy storage demonstration projects. This October, $2.8 billion of these funds were awarded.��

Energy storage is having its best year on record, with installations at the end of the third quarter of 2022 already nearly even with total capacity in 2021. Now that the storage industry has access to a federal investment tax credit (ITC) for the first time ever thanks to the Inflation Reduction Act, battery storage installations are projected to exceed 10 gigawatts (GW) per year for the foreseeable future.��

To ensure the steady build out of supply chains that support rapidly-growing energy storage deployment, the Administration must provide timely guidance on IRA tax credit provisions, including for the new energy storage ITC. Additionally, to ensure the full benefits of the IIJA, the Administration must ensure that future grants for battery manufacturing include a diversity of technologies appropriate for grid energy storage, including both lithium- and non-lithium-based batteries and their components. Lastly, ACP encourages Congress to double the appropriations for energy storage demonstrations and early deployments, particularly in resilience applications.��

Solar & Wind��

The IIJA expanded funding for new research and recycling projects in both wind and solar, and provided additional funding for solar manufacturing research and development (R&D). Federal funding for R&D can reduce costs��and barriers to clean energy technologies.��

This year, DOE has announced funding opportunities that include $29 million for R&D of the solar supply chain, $27 million for solar manufacturing R&D, $8 million for funding bat-deterrent technology development, and $8 million for solar agrivoltaic research. Without certainty on policy and tax issues, however, the development of these projects will continue to experience delays.��

To ensure the steady build out of wind and solar projects and avoid closures of existing American factories, the Administration must provide timely guidance on IRA tax credit provisions and the DOE must move forward with the announced funding opportunities, continuing to unlock the full funding under the IIJA.��

Offshore Wind��

The offshore wind industry will benefit from three provisions specific to the industry in the IIJA with increased funding for vessels, port grants, and regulatory authority to allow for energy storage on the Outer Continental Shelf (OCS).��

Offshore wind projects face a shortage of specialized vessels, as each project will utilize over 25 different types of vessels. The DOE expanded the Advanced Technology Vehicles Manufacturing Loan Program to include marine vessels, creating a lending authority of $17.7 billion that could help build low-emission offshore wind vessels by offering loans at low interest rates. Although this program is unlikely to help build the largest construction vessels, it could likely help vessels such as Crew Transfer Vessels and Service Operation Vessels.��

are ready to develop offshore wind, so increased funding in the IIJA for the Maritime Administration’s Port Infrastructure Development Program could help grow offshore wind ports. Ports need investments in heavy-duty wharves, lay-down areas, manufacturing facilities, dredging, and other improvements before they can serve as staging areas for offshore wind projects. The Biden administration should prioritize port development for offshore wind projects when reviewing grant applications to ensure ports are ready to serve the administration’s goal of deploying 30 GW of offshore wind by 2030.��

The IIJA clarifies that storage of energy other than oil and gas can occur on the OCS. This forward-leaning clarification would allow for potential development of hydrogen production and storage by offshore wind turbines on the OCS.��

Hydrogen��

The IIJA provided unprecedented funding for clean hydrogen projects. With $8 billion set aside for clean hydrogen hubs, $1 billion for a clean hydrogen electrolysis program, $500 million for clean hydrogen manufacturing and recycling, and a requirement for DOE to define “clean hydrogen,” the IIJA set the stage for the U.S. to enter the nascent clean hydrogen global market. ��

DOE has moved each of these initiatives forward, recently requesting information on a definition of clean hydrogen that would align with the statutory mandates in both the IIJA and the new tax credits in Section 45V of the IRA. In addition, DOE announced the first round of funding for clean hydrogen hubs, of which zero-carbon hydrogen must make up at least two projects. DOE also has requested information on clean hydrogen electrolyzer manufacturing.��

To empower the emerging clean hydrogen market and provide certainty for developers, DOE must continue its efforts in finalizing a definition of clean hydrogen that can also be applied in the context of the IRA’s section 45V hydrogen tax credit. This includes working with stakeholders to ensure that clean hydrogen is defined in a way that is workable within the emerging clean hydrogen market, while also consistent with the goal of lowering carbon emissions. ��

—��

One year later, the IIJA is poised to advance the American clean energy transition and the Biden administration has taken many steps to operationalize the provisions. ACP urges the DOE and the Biden Administration to continue moving rapidly to finalize guidance and unlock the remaining critical funds that will help the industry rapidly deploy affordable and reliable clean energy to Americans across the country.��

But a closer examination shows this tracks. Long-term policy is now in place thanks to the IRA, but regulatory and supply chain challenges abound. The solar market has faced repeated delays as companies struggle to obtain panels as a result of an opaque and slow-moving process at U.S. Customs and Border Protection. Policy uncertainty around tax incentives constrained wind development, underscoring the near-term need for clear guidance from the Treasury Department so the industry can deliver on the promise of the IRA.

Congress has yet to pass critical permitting reform that would enable clean energy development, interconnection queues to bring more clean power online continue to swell along with lead times, and transmission expansion remains inadequate. These issues will need to be resolved to realize the full benefit of the IRA.��

That’s the context. Now, here are the top five takeaways from ACP’s Clean Power Quarterly Q3 2022 Market Report.

1. Third quarter shows slowest quarterly installs since Q3 2019��

Roughly 3.4 GW of new clean power capacity was installed in the third quarter, down 22% compared to the third quarter of 2021. In fact, Q3 marked the slowest quarter the clean power industry has experienced since the third quarter of 2019. Year-to-date (YTD), 2022 installs are 14.2 GW, down 18% compared to the first three quarters of 2022. Difficulty sourcing solar panels and supply chain constraints have proven to be major barriers for clean power projects. Interconnection challenges and the previous phase-down schedule of the Production Tax Credit (PTC) are at work, as well. The PTC, which provides a tax credit per kilowatt hour of electricity generated for the first 10 years of generation, was previously only available to land-based wind projects that began construction by the end of 2021. Under the newly enacted IRA, the tax credit phase-out begins in latter half of 2032 or when U.S. emissions fall to 25% of 2022 levels.��

By technology, 1,877 MW of new solar capacity was brought online last quarter, bringing 2022 solar installations to 7,071 MW. Battery storage, with 1,195 MW/ 2,774 Mega Watt hours (MWh) of new capacity deployed, delivered its second strongest quarter after the fourth quarter of 2021. Only two new wind projects with a total capacity of 356 MW were commissioned this quarter. Both solar and land-based wind had the lowest quarterly installs the industry has seen in several years. The third quarter was the lowest quarter for solar installs since the third quarter of 2020, and the lowest land-based wind quarter since the second quarter of 2017.

Cumulative and Annual Clean Power Capacity, 3Q 2022

2. U.S. clean power pipeline remains stalled��

At the close of the third quarter, there were 132 GW of clean power capacity in development. That is the clean energy equivalent of powering 34 million American homes. The pipeline grew just 3% last quarter, on par with the 3-4% growth experienced over the past two quarters. This is a far cry, however, from the 12% average quarterly growth the industry experienced in 2021. ��

The majority, 69%, of the U.S. clean power pipeline is solar capacity. Land-based wind constitutes 17% of the pipeline, offshore wind 13%, and battery storage the remaining 11%.�� Texas leads the nation with 23.8 GW in development, accounting for almost a fifth of the total pipeline. California sits in second with 12.8 GW in development, 98% of which is solar or battery storage. New York rounds out the top three U.S. states with 10.8 GW in the clean power pipeline, thanks in part to 4.4 GW of offshore wind capacity being developed off of the Golden State’s coastline.����

3. Project delays continue to mount��

Clean power project delays continued to stack up in the third quarter. Nearly 14.2 GW of clean power capacity was delayed last quarter, of which more than half had already experienced earlier delays. In total, ACP is tracking 36.2 GW of delayed projects plus a further 3.5 GW that have terminated. Projects that failed to come online in the third quarter have an expected delay of half a year, though many of these projects have been pushed back several years. Less than half of the delayed clean power capacity is expected online by the end of the year. Solar accounts for the majority of the delayed capacity at 63%. This is primarily due to an inability to obtain panels to complete projects as a result of trade restrictions. Causes of wind delays, which make up 23% of total delays, range from on-going supply chain constraints to grid interconnection delays. Battery storage projects are seeing the least amount of these effects. least, with just 14% of delays. Most delayed storage projects in the United States are co-located with delayed solar projects.��

Delayed Clean Power Capacity

4. Procurement activity slows��

Announcements of new contracts by clean power buyers also decelerated this quarter, though not to the same extent as clean power installations. Buyers and developers of wind, solar, and energy storage projects announced 7.2 GW of new power purchase agreements (PPAs) this quarter, down 31% from the same period last year. Year to date, PPA announcements are down just 3% compared to 2021 thanks to a strong second quarter for announcements. Commercial and industrial (C&I) purchases accounted for 43% of announcements, and utilities an additional 25%. Amazon was the largest purchaser of the quarter after announcing another 2 GW of clean power procurement in the U.S.����

Q3 PPA Announcement Comparison, 2021 and 2022

5. Passage of the IRA shines light on a bright clean energy future��

Supply chain issues have constrained the clean power industry in the short term. Long term, however, the recently enacted and historic IRA will boost clean power deployment to unprecedented levels. ACP’s preliminary assessment of the IRA is that the bill’s�� policies will deliver an estimated 525 to 550 GW of new, utility-scale clean power from 2022-2030. As a result, we now expect there will be roughly 750 GW of operating clean power capacity in 2030, enough clean energy to�� to supply the nine largest electricity consuming states in America. With stable policies in place, we expect annual wind, solar, and energy storage capacity installations to grow to over 90 GW by the end of the decade, more than tripling the 28 GW installed in 2021.����

With the IRA’s provisions now intact, the pace of clean energy installations is expected to quicken over the course of the decade. By mid-decade, annual clean power installations are expected to reach more than 50 GW before climbing further to over 90 GW by decade’s end. For comparison, the average clean energy industry forecasts under business-as-usual conditions anticipate 335 GW of new clean power additions, with the most prolific year clocking just under 50 GW installed.��

Building 525-550 GW of new clean power capacity will generate $550 to $600 billion in capital investment. More broadly, construction of these projects is expected to generate over $900 billion in economic activity and add nearly $500 billion to U.S. GDP across the decade. After construction, ongoing maintenance and operations will contribute over $14 billion to U.S. GDP each year while generating nearly $29 billion in annual economic activity.

To learn more top takeaways from the third quarter download a copy of the Clean Power Quarterly Market Report for Q3 2022 .�� ACP members have full access to the data from the third quarter. Not an ACP member? Inquire about joining today.��

��

Most critically for the utility-scale clean power industry – and for the �Բ��پ��Dz�’s energy future – the bill extends the production tax credit and investment tax credit for wind and solar through 2024 before transitioning to a technology-neutral tax credit that will remain in place until 2032 or when electric-sector emissions fall to 75% of 2022 levels, whichever is later. Energy storage, for the first time, is made eligible to qualify for the investment tax credit, while domestic manufacturing of clean energy components is incentivized through component-specific production tax credits and an expansion of the 48(c) advanced manufacturing tax credit. Including these stable policies in the IRA that have been added to the final reconciliation legislation will finally unleash the full economic potential of swiftly deploying wind, solar, energy storage and transmission – and our industry is ready to deliver.

It’s hard to overstate the transformative impact that the IRA will have on the country’s electric grid – not to mention the broader climate benefits.

ACP’s preliminary assessment of the IRA is that its policies will deliver an estimated 525 to 550 gigawatts (GW) of new, utility-scale clean power from 2022-2030. As noted in our Q2 2022 Clean Power Quarterly Market Report, the current clean power operating capacity in �ٳ�� U.S. is now over 211 gigawatts – m�𲹲Ծ��Բ� that with the passage of the IRA, there will be roughly 750 GW of operating clean power capacity in 2030. With stable policies in place, we expect annual wind, solar, and energy storage capacity installations to grow to over 90 GW by the end of the decade, more than tripling the 28 GW installed in 2021.��

The pace of clean energy installations is expected to quicken over the course of the decade with the IRA’s provisions. By mid-decade, annual installations are expected to reach more than 50 GW before climbing further to over 90 GW by decade’s end. For comparison, the average industry forecasts under business-as-usual conditions anticipate 335 GW of new clean power additions, with the most prolific year clocking just under 50 GW installed. Passage of the IRA would shift American clean power growth into overdrive.��

Let’s try to put those figures into more relatable terms. Adding 550 GW to the grid means that the newly added clean power plants will generate enough electricity to power the equivalent of 110 million homes across the country. That is nearly every home in America. Fold in the existing 211 GW of clean power and the fleet of wind, solar, and energy storage projects operating in 2030 will generate the same amount of electricity as consumed by the nine biggest electricity consuming states in the country.����

More simply, it means that roughly 40% of the country’s electricity will come from wind, solar, and energy storage by 2030.

The growth of clean power will deliver a tremendous amount of new jobs and economic benefits across the country. ACP estimates that the IRA will help create 550,000 new clean energy jobs^[1] – more than doubling the current clean energy workforce.

As a result, the clean power industry will support a direct workforce of nearly 1 million Americans by 2030.

These jobs will provide nearly $300 billion in wages and benefits to hard-working Americans. In addition, once complete, these projects will support 125,000 permanent jobs in the operations and maintenance phase, providing nearly $9 billion in wages and benefits each year.

Building 525-550 GW of new clean power capacity will generate $550 to $600 billion in capital investment. More broadly, construction of these projects is expected to generate over $900 billion in economic activity and add nearly $500 billion to U.S. GDP across the decade. After construction, ongoing maintenance and operations will contribute over $14 billion to U.S. GDP each year while generating nearly $29 billion in annual economic activity.��

Critically, the bill is expected to fight inflation and lower consumers’ energy bills. Analysis from finds that the average consumer can expect to save $1,025 in 2030 compared to today. Savings come from lower electricity costs, lower home heating costs thanks to a shift to electric heating, and lower mobility costs thanks to electric vehicles that will be increasingly powered by wind and solar.��

Importantly, the measures in the IRA package are expected to drive an estimated by 2030, relative to 2005 levels. In the electric-sector alone, we expect clean energy resources to drive emissions to just one-third of 2005 electric-sector emissions levels by 2030. This keeps America within striking distance of the country’s 2030 emissions goal for the power sector.

The IRA represents a monumental investment in the �Բ��پ��Dz�’s energy transition – an investment that will deliver clean energy, jobs, domestic manufacturing, economic growth and put the country in a much better position to deliver on our emissions goals. Swift action in Congress can help ensure these critical investments in our energy future move forward and the benefits reach all corners of America.��������

[1] Importantly, these figures don’t include induced jobs—those jobs supported in the community thanks to the investment in projects taking place.

For context: in early 2021, President Biden announced an ambitious goal of deploying 30,000 megawatts (MW) of offshore wind off the coast of the United States by 2030. With only seven wind turbines constituting 42 MW currently spinning in American waters, and an additional 920 MW approved for construction last year ( and ), the industry’s capacity to meet this administration’s goal hinges on BOEM’s ability to efficiently review and approve the 11 offshore wind project construction and operations plans (COPs) currently in the pipeline – as well as the many more COPs anticipated in the future.��

One of the biggest bottlenecks for these reviews has been the selection of a “reasonable range of alternatives” to the offshore wind project proposal for BOEM to analyze, as required under NEPA.[1] Under longstanding law, this range of alternatives for an applicant-driven project approval must account for the goals of the applicant and the economic and technical feasibility of a project.[2]

Offshore wind developers must procure components and highly specialized installation vessels years in advance of project construction – especially in the U.S., where a domestic supply chain is still in the early stages of development. Developers need certainty that if their projects are approved, they won’t be required to radically alter project designs and go to the back of the line with their contractors and subcontractors.������

BOEM’s new guidance represents a quantum leap toward providing this badly-needed regulatory certainty. The guidance states that BOEM should not fully analyze an alternative to the proposed project unless it:��

• Fulfills the Bureau’s “purpose and need” in reviewing the project (e.g., is within BOEM’s legal authority to approve);��
• Meets the primary goals of the application (e.g., allows the developer to satisfy its contractual obligations to provide power without triggering project delays or allows it to compete in upcoming power offtake solicitations);��
• Is technically, economically, and environmentally feasible, demonstrating that these projects can be constructed using commercially available technology, does not increase costs , or would not create environmental harms that outweigh the purported benefits.;��
• Would avoid or substantially lessen a significant socioeconomic or environmental impact;����
• Is not remote or speculative (i.e., is sufficiently concrete to be analyzed); and��
• Is not duplicative in design or environmental/socioeconomic effects.��

ACP believes these criteria will help expedite the environmental review process by limiting the amount of time that agencies spend suggesting – and that BOEM subsequently spends analyzing – inappropriate and ineffective alternatives whose consideration will not improve the environmental review process or projects themselves. This, in turn, will allow reviewing agencies to devote more resources to the most important part of the review process: analyzing project effects and benefits and working with developers to develop workable mitigation measures.��

ACP also believes that these criteria will encourage earlier and more open communication between agencies and developers during the project development phase, and the avoidance of surprises later in the process when it may be too late to make radical changes to project design and installation methods.�� Additionally, ACP and its members look forward to working closely with BOEM and its cooperating agencies to ensure this guidance is consistently implemented. Only then can the certainty and efficiencies that this guidance promises be fully realized.

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[1] 40 CFR 1508.1(z)

[2] See, e.g., Citizens Against Burlington, Inc. v.��Busey,��938 F.2d 190 (D.C. Cir. 1991).