2022 a record year for solar and wind, S&P

Overview:

  • According to a new analysis from S&P Global Market Intelligence, utility-scale solar and wind deployments are on course to set a new record in 2022
  • The firm expects that 44 gigawatts of solar will be installed next year, almost double the estimated 23 gigawatts in 2021
  • “These record-setting estimates are just the beginning of the present administration is successful in putting the United States on a path to 100 percent de-carbonization of the energy sector by 2035,” S&P said

Positive Forecast

Solar and wind deployments in the United States are on track to set new milestones in 2022. According to a new analysis from S&P Global Market Intelligence, the energy transition is gaining traction.

Next year, the company anticipates 44 gigawatts of utility-scale solar and 27 gigawatts of wind to be operational. Solar capacity is expected to nearly treble by 2021, from an estimated 23 gigawatts. In the case of wind, the predicted increases in 2022 are expected to comfortably surpass the existing annual record of 16 gigawatts set in 2020.

According to the Public Power Association, the United States has a total generating capacity of around 1,200 gigawatts.

Drivers for the Generation of Solar and Wind

The increase in wind and solar power generation is being fueled by several causes. This includes the planned extension of renewable energy tax credits and the increase of renewable energy mandates at the state level.

S&P also noted an increase in corporate demand. Switching to renewable energy is often one of the first and easiest actions for organizations aiming to reduce emissions. Total wind and solar power committed to non-utility entities are expected to reach 40 gigawatts next year, according to the firm.

Energy storage is also on the rise, which is important for intermittent power sources like wind and solar. According to S&P, 8 gigawatts of storage will be built in 2022, which is six times more than ever before.

President Joe Biden has made climate change a priority for his administration, pledging to achieve a carbon-free power industry by 2035. This is part of his larger goal of reducing the country’s emissions to zero by 2050.

Bill for Infrastructure

The House of Representatives passed an infrastructure measure on Friday evening that contains billions of dollars for sustainable energy projects. The House is currently discussing a larger $1.75 trillion social safety net and climate package, which includes $555 billion in climate-related spending.

“These record-setting expectations are just the beginning if the present administration is successful in putting the United States on a path to 100 percent de-carbonization of the energy sector by 2035,” S&P said of the 2022 estimations.

However, not everyone shares this optimism. According to a report released in October by Rystad Energy, more than half of the worldwide solar buildout in 2022 is threatened by growing raw material costs and supply chain bottlenecks.

According to the business, 56 percent of the planned 90 gigawatts of new utility-scale solar in the world could be delayed or cancelled.

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