• 11% growth in the now nearly 140 gigawatt (GW) development pipeline reflects promise of new federal policies, while historically low Q4 2022 and Q1 2023 installations demonstrate lingering headwinds 
• Total clean power installations declined in 2022 for the first time in five years 
• Texas added over 9 GW of clean energy in 2022, the most in the U.S., while Iowa and South Dakota each generated over 50% of their electricity from clean power 
• Energy storage had a record year with 4 GW and 12 GWh installed, an 80% capacity increase 

NEW ORLEANS, May 22, 2023 – Today, the American Clean Power Association (ACP) released its comprehensive Clean Power Annual Market Report for 2022 and its Clean Power Quarterly Market Report for Q1 2023, finding that combined U.S. wind, utility solar, and energy storage capacity had the third-largest year on record in 2022 with over 25 gigawatts (GW) of new clean power installed. However, a decline in deployment volume from the previous two years, combined with a historically low Q1 2023, underscore the continued headwinds facing the industry. 

After historic clean energy incentives were signed into law in August 2022, clean power has seen record levels of announced activity, with the development pipeline swelling to nearly 140 GW by the end of Q1 2023 – 11% above where it was at the same point last year. However, it is too early to see this activity translate into installations, which have slowed for the first time since 2017. 

“The clean energy revolution is underway,” said ACP CEO Jason Grumet. “We have the technology, financial capital and workforce to power our economy with clean, affordable and secure energy. There is broad bipartisan support for American energy innovation. But the clean energy transition will not succeed unless Congress and Governors enable the siting and construction of new energy facilities and support the build out of transmission that is required to bring clean power to the people.” 

By the end of 2022, nearly 228 GW of clean energy was online, with 4 GW more added in Q1 2023. These resources provide 15% of the nation’s electricity and deliver enough electricity to power the equivalent of over 62 million households. Clean power dominated new power capacity additions in 2022, comprising nearly 80% of all new grid additions.  

Texas added twice as much clean energy capacity as any other state in 2022 (over 9 GW), maintaining its status as the state with the most operating clean power capacity (nearly 55 GW). Iowa and South Dakota each generated over half of their electricity from clean power last year. 

Energy storage witnessed a record year in 2022 with 4 GW and 12 GWh commissioned, representing an 80% increase in total operating storage capacity. Hybrid project installations in 2022 were 60% higher than in 2021, setting a new record in the hybrid space at nearly 6 GW of installations. 

In the nearly 140 GW development pipeline, solar accounts for 59% of all clean power capacity. Land-based wind accounts for 15% of the pipeline, battery storage represents 14%, and offshore wind claims the remaining 13%.

Headwinds & Delays 

However, the year’s progress was not enough to continue the annual growth trajectory of U.S. clean power, with the industry seeing a decline in combined installation volume for the first time in five years and the lowest Q1 (2023) in three years.  

Contributing to the slowdown in installations were delays in 2022 that affected over 50 GW of projects in late-stage development, with a total of 63.3 GW – equivalent to powering nearly 7 million homes – experiencing delays by the end of Q1 2023. On average, these projects face delays of six months or longer, depriving ratepayers of clean, affordable electricity.  

Project delays are primarily due to unclear permitting timelines, trade policy uncertainty, transmission shortages, difficulties sourcing solar panels, unresolved IRA implementation, and interconnection queue challenges (with over 1,741 GW waiting in queues at the end of 2022).   

These challenges must be addressed to unlock the full potential of the nearly 140 GW of clean energy in the development pipeline. 

Key Highlights – Overall 

• Third-Largest Year: 25.5 GW of new clean power was commissioned in 2022, making it the third-largest year on record and bringing the total amount of American clean power online by year’s end to nearly 228 GW.
• Leading Source of New Power: Clean power represented 79% of all new capacity added in 2022. 
• Powering More of America: By the end of Q1 2023, wind and solar provided 232 GW of clean energy, over 15% of the country’s electricity and equivalent to powering over 62 million homes. 
• Net-Zero Progress: Maintaining last year’s project installation volume would provide only 30% of what is needed to reach a net-zero grid by 2035. 
• Significant Delays: By the end of 2022, 53 GW of projects were experiencing delays due to ongoing regulatory, supply chain and interconnection challenges, contributing to a 15% decline in deployment volume from 2021. 63.3 GW of clean power was delayed by end of Q1 2023.
• Development Pipeline: 139 GW of clean energy projects were under development at the end of Q1 2023. 
• Storage Soars: In 2022, energy storage witnessed a record year with 4 GW and 12 GWh commissioned, representing an 80% increase in total operating storage capacity. 
• Growing Workforce & Investment: The clean power industry employs 443,000 workers and invested $35 billion in capital investment in 2022. 
• United States of Clean Energy: Clean power is red, white, and blue with projects or manufacturing facilities in 93% of Congressional districts. Projects can be found in all 50 states. 
• Booming Manufacturing: There are 550 U.S. manufacturing facilities dedicated to producing components and parts for wind, solar, and storage projects in the clean power industry – and since the passage of the Inflation Reduction Act (IRA), 47 new clean energy manufacturing facilities or expansions have been announced, bringing more than 18,000 new American jobs. 

Key Highlights – Q1 2023 

• Lowest Q1 Since 2020: Q1 2023 saw a 36% drop in clean power installations (4,079 MW) compared to Q1 2022. 
  • 95 project phases were commissioned across 27 states, with Florida and Texas leading. 
• Sector Snapshot: Solar led the quarter (2,200 MW), followed by wind (1,418 MW) and battery storage (461 MW). 
• Delays: Regulatory challenges led to significant project delays, especially in the solar sector, with 7.3 GW of clean power capacity expected online in Q1 delayed, for a total of 63.5 GW of clean power delayed by end of Q1. 
  • 90% of Q1 delayed capacity expected to come online later in 2023. 
• Pipeline: The development pipeline grew 11% from Q1 2022 to 139 GW, dominated by solar at 59%. 
• PPAs: New Power Purchase Agreement (PPA) announcements fell by 24% to 3.8 GW, with corporate buyers leading at 63%. 

The Clean Power Market Reports for 2022 and Q1 2023 are comprehensive overviews of the U.S. wind, utility solar, and energy storage markets, containing in-depth analysis of key industry statistics, trends, and rankings. The 180-page annual report and the Q1 2023 report are available exclusively to ACP members.

A public website with interactive data from the 2022 annual report can be viewed here. 

“No American industry enjoys being used as a pawn in partisan political negotiations. The American Clean Power Association is nevertheless confident that Congress and the Administration will not interrupt the burst of private sector investment in American clean energy production and manufacturing. In the last nine months, forty-six new clean energy manufacturing and production facilities have been announced, creating high wage jobs in communities across the country.

“There is real work to do to support this American energy revolution. Congress must act to enable more efficient project permitting, facilitate the construction of new energy transmission and distribution and help American employers support and train hundreds of thousands of new workers. ACP is eager to work with Republicans and Democrats who share our commitment to secure, affordable and clean domestic energy.”

“In the last nine months, the clean energy industry has announced 46 major manufacturing facilities and scores of clean energy projects in communities across the country. If enacted, today’s actions would jeopardize these investments and thousands of good paying American jobs. The American Clean Power Association is interested in working with Republicans and Democrats on permitting reform, energy security, and the real challenges facing the energy sector and our economy. Congress should not waste time or energy on political messaging bills that do not advance the national interest.”

“Congratulations to Senate Majority Leader Chuck Schumer, House Speaker Kevin McCarthy, and the 118th Congress. We anticipate that this new Congress will provide ample opportunity for bipartisan cooperation on advancing commonsense clean energy policies that lower electricity bills, create millions of jobs, and move America into a future of energy independence. We look forward to working with both the House and Senate to deliver the clean, abundant, and affordable power Americans want.”

“The IRA represents a monumental investment in the nation’s energy transition and domestic workforce. Clear and workable guidance is the key to unlocking that investment. While ACP and our members are supportive of the IRA’s labor requirements, the guidance issued today provides little clarity on the implementation of these provisions.  Further clarity is essential to provide the market certainty necessary to drive timely clean energy deployment and to support job creation at levels that will ensure the IRA lives up to its promise.”

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Background: On November 4, 2022 ACP issued a statement in reference to comment letters filed in six areas to ensure the clean energy incentives in the IRA make clean energy investments a reality. The previous statement can be viewed here.

WASHINGTON, D.C., November 4, 2022 – The American Clean Power Association (ACP) released the following statement today from JC Sandberg, Interim CEO and Chief Advocacy Officer, after submitting comments in response to the Treasury Department and Internal Revenue Service’s (IRS) request for comments on key areas – Energy Communities, Prevailing Wages and Apprenticeships, Domestic Content, Advanced Manufacturing Production Tax Credit, Transferability/Direct Pay, and Generation Incentives Related to 45, 45Y, 45V, 48, and 48E – related to implementation of the clean energy tax provisions in the Inflation Reduction Act of 2022 (IRA).

“The IRA represents a monumental investment in the nation’s energy transition—an investment that promises to deliver enough clean energy to power every home in America by 2030, while supporting jobs, domestic manufacturing, economic growth, and U.S. global competitiveness. Clear, workable, and flexible Treasury guidance is the key to incentivizing taxpayers and the clean energy industry to develop projects in a timely way – and at levels that will ensure the IRA lives up to its promise. ACP appreciates the broad public engagement that Treasury is engaging in with taxpayers and stakeholders to inform this guidance.

“In response to Treasury’s request for comments on key provisions, we are offering robust recommendations on how to accelerate clean energy deployment, while invigorating the U.S. clean energy workforce and supply chain. To ensure the incentives in the IRA make these clean energy investments a reality, ACP’s comments focus on areas where guidance from Treasury will be essential to provide sufficient market certainty for developers.

“We look forward to continued engagement with Treasury and stakeholders on this once-in-a-generation opportunity to create a more sustainable and prosperous nation.”

• Supply chain disruptions, trade and tariff issues, and lack of tax policy certainty all slowed project starts.
• Quarterly wind installations fell 78% while solar installations dropped 23%, as 14 gigawatts of project delays mounted during the quarter.
• Storage was a bright spot with its second-best quarter on record after Q4 2021.
• Over 132 gigawatts of clean power capacity in development across the U.S.

WASHINGTON, D.C., November 2, 2022 – While the clean energy industry celebrated the August passage of the Inflation Reduction Act (IRA), the largest clean energy investment in U.S. history, policy challenges continued to limit clean power growth in the third quarter, according to a new report released by the American Clean Power Association (ACP).

From July to September of 2022, 3.4 gigawatts (GW) of new utility-scale clean power capacity were installed, bringing 2022 year-to-date installations to 14.2 GW, according to the Clean Power Quarterly Market Report. Installations were down 22% compared to the third quarter of 2021, and down 18% year-to-date. Quarterly wind installations fell 78%, while solar installations dropped 23%. Only battery storage, which commissioned 1.2 GW this quarter, increased installations compared to the third quarter of 2021. Storage is having its best year on record, with 2022 installations already nearly even with total 2021 volumes.

Project delays weighed heavily on installation volumes as developers struggled to procure solar panels, faced supply chain challenges, and confronted ever-growing interconnection queues to connect projects to the grid. In total, 14 GW of clean power capacity was delayed this quarter, adding to a growing backlog of delayed projects that totals 36 GW – 63% of which are solar projects.

“While the IRA is set to catalyze clean energy growth, the industry continues to deal with policy and regulatory challenges hindering development and deployment of clean power,” said JC Sandberg, Interim CEO and Chief Advocacy Officer.

“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. Storage was the one bright spot for the industry and had its second-best quarter on record,” Sandberg continued. “The aggressive deployment of storage continues to drive down consumer energy costs and enhance grid reliability.”

Overall, Texas and California had the biggest clean power deployments including large-scale wind, solar and battery hybrid developments, and standalone storage. Amazon was the largest purchaser of the quarter after announcing another 2 GW of clean power procurement in the US.

“ACP anticipates that the IRA will give industry the tools it needs to more than triple annual installations of wind, solar, and battery storage by the end of the decade. We expect the IRA to deliver 550 GW of new capacity by 2030, representing $600 billion in capital investment and growing the clean power workforce to nearly a million strong by 2030. We continue to work with relevant government decision-makers to quickly resolve remaining tax guidance, supply chain, and trade challenges to realize the IRA’s full potential. This is essential to set the nation on a path to achieve its clean energy goals,” concluded Sandberg.

Project Delays Contribute to Slowdown

• Nearly 14.2 GW of clean power capacity were delayed this quarter, of which more than half had already experienced delays. In total, ACP is tracking 36.2 GW of delayed projects, plus a further 3.5 GW that have been terminated or canceled.
• Projects that failed to come online this quarter have an expected delay of half a year, while many have been pushed back several years. Less than half of the delayed capacity is expected online by the end of the year.
• Solar dominates the clean energy project pipeline but also accounts for the majority of delayed capacity at 63%. Land-based wind accounts for 23% of delays and battery storage the remaining 14%.
• Solar panel detentions are preventing projects from reaching completion and threaten to disrupt the pace of future installations, while supply chain disruptions and grid interconnection delays have slowed the pace of wind installations.

Texas and California Saw the Biggest Projects

• The 350 megawatt (MW) Azure Sky Wind Project, owned and developed by Enel in Texas, was the largest wind project to achieve operations this quarter. The 123 MW/ 189 MWh storage portion of the project is expected online by the end of the year.
• The largest hybrid project commissioned this quarter was NextEra’s California-based Arlington (Riverside County Solar) Solar + Storage project, with 231 MW of solar capacity paired with 242 MW/ 968 MWh of battery capacity. An additional 133 MW of solar is still in development.
• AES’s California Lancaster Battery Storage, at 127 MW/ 508 MWh, was the largest standalone storage facility online this quarter.

59 Million Homes Now Powered by Clean Energy

• In total, there are now 216.4 GW of utility scale clean energy operating, powering approximately 59 million homes across the country.
• Sixty five percent of that capacity is land-based wind, 32% solar, 4% battery storage, and less than 1% offshore wind.
• Operational capacity has increased 7% since the start of the year.

​​​​​​​Development Pipeline 

• As of the end of the quarter, there are over 132 GW of clean power capacity in development, including 39 GW under construction and 93 GW in advanced development. Between July and September, 2.5 GW of capacity began construction, and 4.6 GW entered advanced development.
• Capacity entering the pipeline has been waning over the past few quarters, down 36% from Q2 and 40% from Q1.
• Policy uncertainty prior to the passage of the Inflation Reduction Act has weighed on pipeline growth. With the package in place and reasonable timelines for Treasury guidance issuance, the pipeline is expected to return to rapid growth.

The Biggest Buyers

• Amazon was the largest purchaser during the quarter after announcing another 2 GW of clean power procurement in the U.S.
• Announcements of new contracts by clean power buyers also slowed this quarter. Buyers and developers announced 7.2 GW of new power purchase agreements (PPAs) this quarter, down 31% from the same period last year. Year to date, announcements are down just 3% compared to 2021.
• Commercial and industrial (C&I) purchases account for 43% of announcements, and utilities an additional 25%.

Download the Clean Power Quarterly Market Report – Q3 2022

WASHINGTON DC, February 15, 2022 – The Clean Power Quarterly 2021 Q4 Market Report, released today by the American Clean Power Association (ACP), shows the U.S. surpassed more than 200 gigawatts (200,209 MW-ac) of total operating utility-scale clean power capacity in 2021, but significant policy issues continue to hold back growth for the industry and threaten the country’s ability to meet emissions goals.

“Surpassing over 200 gigawatts of clean energy is a significant milestone for the United States and shows that we can achieve even more with strong public policy support for the industry,” said Heather Zichal, ACP CEO. “Although the U.S. has reached this incredible achievement, more needs to be done, at a faster pace, to reach the climate goals and targets our country needs to achieve. We urge Congress to take action to create a clean energy future that will help create more good-paying American jobs and combat the climate crisis.”

During 2021 there was a three percent decline for clean energy installations compared to 2020’s record year. Over 11.4 gigawatts of projects, originally expected to come online in 2021, slipped to 2022 or 2023 due to a variety of issues. For the solar sector this was due to trade policies and lack of regulatory certainty impacting the availability of solar panels coming into the country. The wind sector faced policy uncertainty, including the expiration of tax credits for wind projects.

The pace of installations fell significantly short of what is required to achieve a net zero emissions goal. While 27.7 GW is the second largest year on record for combined wind, solar and energy storage installations, it is only 45% of what’s required to stay on track for an emissions-free power sector.

2021 New Capacity Additions

Throughout 2021, the renewable energy sector installed 27.7 gigawatts (27,723 MW) of new utility-scale wind, solar, and energy storage capacity, with 10,520 MW being installed in the fourth quarter. These clean power projects represent $39 billion in investments across the sector.

• Wind power capacity installations for 2021 totaled 12,747 MW for the year, with 5,409 MW brought online in the fourth quarter.
• The solar sector overall installed 12,364 MW for the year, including 3,937 MW added in the fourth quarter.
• Battery storage installations totaled 2,599 MW in 2021, outpacing 2020 by over 1,500 MW. During the fourth quarter, 1,173 MW of battery storage projects were brought online, the first quarter ever to pass 1 gigawatt of new installations.

1,000 Clean Power Projects: Powering Jobs and Economic Growth

There are now over 1,000 clean energy projects under development across the country, totaling 120,171 MW of new capacity in the development pipeline. This includes 37,802 MW under construction and 82,369 MW in advanced development.

Despite unclear policy headwinds, U.S. project owners commissioned 606 new project phases across 43 states during 2021, including 168 projects in the fourth quarter.

The top five states for new installation additions in 2021 include:

• Texas (7,352 MW),
• California (2,697 MW),
•  Oklahoma (1,543 MW),
• Florida (1,382 MW) and
•  New Mexico (1,374 MW)

The top five states for clean power development (by percent of projects under construction or advanced development) include:

• Texas (17 percent)
• California (11 percent)
• New York (7 percent)
• Indiana (5 percent)
• Virginia (5 percent)

Clean Power Procurement and Market Trends

2021 was a record year for clean energy procurement, with 28 GW of power purchase agreements (PPAs) signed in 2021. For perspective, 28 GW of clean energy exceeds the electricity demand of the entire U.S. federal government.

Growth for clean energy is due to several factors, including strong continued demand from consumers. Corporate buyers surpassed utilities in clean energy procurement for the first time, announcing deals totaling over 14 GW in 2021. Utilities signed contracts for over 10 GW of wind, solar, and battery storage.

During the fourth quarter, corporate customers signed onto 1,871 MW of power purchase agreements. Pfizer was the top corporate offtaker during the quarter with 310 MW announced, followed by Meta Platforms (Facebook) with 285 MW, and PepsiCo announcing 72.5 MW.

Utilities made up 35 percent of the announced PPA capacity during the quarter, with 19 utilities signing contracts representing a total capacity of 1,994 MW. The 2021 fourth quarter utility PPA announcements were led by Public Service Company of Colorado (350 MW), Entergy Louisiana (250 MW), and Consumers Energy (225 MW).

Solar was the dominant technology for utility PPA announcements, accounting for over 70 percent of the new capacity announced.

Despite record demand, power purchase agreement prices for future projects increased nearly 6 percent in the quarter, with supply chain constraints, commodity price increases, expiring tax credits and trade barriers all weighing on project economics. Solar PPA prices increased 5.7 percent, while wind prices increased 6.1 percent. According to market data year-over-year, the average overall PPA price increased by 15.7 percent.

Despite some of these increases, renewable energy is one of the most affordable ways to generate electricity and reduce carbon pollution. Clean energy technology has improved dramatically over the past decade with solar costs down 90 percent since 2009 and wind costs down 70 percent.

Link to the full report: https://cleanpower.org/resources/clean-power-quarterly-report-q4-2021