“We’re excited about the continued progress New Jersey is making toward its offshore wind goals, which will create 10,000 jobs and $4.7 billion in economic impact across the state. Ocean Wind 1 plays a key part in meeting these goals, with the ability to power nearly half a million homes per year on clean, reliable, and homegrown wind energy.

“This final Environmental Impact Statement is the result of rigorous review and extensive public input from key stakeholders, demonstrating BOEM’s commitment to building clean power in a way that protects the environment and incorporates community feedback – a commitment that the industry shares. ACP looks forward to BOEM’s final approval of Ocean Wind 1 this year, and the jobs, manufacturing capacity, and energy security that America’s offshore wind industry will bring.”

• 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. 

“Sen. Carper’s PEER Act is an encouraging step forward to advance the deployment of clean energy and transmission in the United States. This proposal would create a predictable and timely federal permitting framework for developing America’s vast clean energy resources and includes a number of provisions to help site and pay for the high-impact transmission lines necessary to support these clean energy projects. Updating our nation’s permitting laws and transmission policy will create thousands of jobs, reduce energy costs, strengthen grid reliability, and protect communities in the aftermath of extreme weather events. 

“We look forward to working with Sen. Carper and other lawmakers in Congress to build on this important effort.” 

“The District Court held that the Bureau of Ocean Energy Management (BOEM) and the National Marine Fisheries Service (NMFS) fully complied with the Endangered Species Act (ESA) and the National Environmental Policy Act (NEPA) in approving what is about to become the largest offshore wind farm in the United States,” said Josh Kaplowitz, ACP Vice President of Offshore Wind. “This opinion validates what we’ve been saying all along: the environmental review process for offshore wind projects is rigorous and effective at ensuring that these projects are built in an environmentally responsible manner. The federal government did its job, and they did it well.”

The District Court agreed with BOEM and NMFS that the best available science was considered in protecting the endangered North Atlantic Right Whale (NARW) and approving the project with an extensive suite of mitigation measures to reduce risk to the species.  The court rejected all of the plaintiffs’ claims that the federal agencies had failed to analyze certain studies and data relating to the NARW.

“We know that offshore wind farms can be built and operated in a way that protects marine ecosystems,” said Kaplowitz. “Now it’s time to get steel in the water and start reaping the significant benefits that offshore wind affords: reducing greenhouse gas emissions, improving our nation’s health, powering millions of homes with secure and reliable domestic energy, revitalizing our maritime and manufacturing sectors, and creating tens of thousands of good-paying American jobs.”

The District Court is expected to issue opinions in the coming weeks regarding two other challenges to the Vineyard Wind project.  However, ACP stresses this opinion bodes well for the ability of this nascent industry to stand up to legal challenges from opponents of clean energy.

Click here to read the full text of the opinion.

Macchiarola currently serves as Senior Vice President of Policy, Economics and Regulatory Affairs at the American Petroleum Institute. In his new role at ACP, he will lead a policy team working to develop the regulatory and legislative framework necessary to efficiently deploy the full suite of advanced clean energy technologies.

Macchiarola joins an executive team that includes Chief Advocacy Officer JC Sandberg; Chief Communications Officer and Sr. Counselor to the CEO Rosanna Maietta; and Chief Strategy Officer Jason Clark.

“The clean energy sector is at a pivotal moment, and growing our team to embrace the opportunities before us will ensure this industry has the bench strength in place in order to match the moment. Frank is uniquely qualified to understand the speed and scale we need to move the organization forward and will partner with our dynamic team to make that happen. I have no doubt that together, we will bring both sides of the aisle, and different constituencies and communities, together to meet our common goal, which is an America powered by clean, domestic energy,” said Jason Grumet, ACP’s Chief Executive Officer.

“The energy industry is going through a generational change; an entire sector of the global economy is being transformed. I have spent my career working on energy policy and I am eager to get to work to advance ACP’s commitment to secure, affordable and clean domestic energy. I am excited to join the team at ACP and be a part of the next phase of the American energy revolution,” said Macchiarola.

Macchiarola starts his new role on June 20, 2023.

“The American Clean Power Association applauds President Biden for standing up for American workers by vetoing this misguided, job-killing legislation. Our nation’s solar industry has already announced billions of dollars in investments focused on building a strong and resilient domestic solar supply chain. The imposition of punitive retroactive tariffs – which would have been borne by U.S. companies and workers – would have jeopardized those investments, hurt American workers, and increased costs for American families.

“We have a lot more work to do in order to develop and sustain a resilient U.S. supply chain in a competitive global marketplace. ACP and our industry members are committed to working with Congress and the Administration to overcome competitive barriers to clean energy deployment, protect American clean energy jobs, and expand our domestic manufacturing base.”

“Offshore wind has the potential to create 10,000 jobs and deliver $4.7 billion in economic impact across New Jersey. Offshore wind is also a critical component to more deployment of clean power, and these two proposed projects off the coast of New Jersey alone would deliver enough energy to power almost 1 million homes in the Garden State. The release of the draft Environmental Impact Statement (DEIS) and call for public comments demonstrates both the Administration’s and industry’s commitment to building clean power in a way that protects the environment.

“As the DEIS highlights, offshore wind farms go through rigorous environmental reviews. We appreciate BOEM’s thorough and inclusive process, which also takes into account the economic benefits that the construction and operation offshore wind farms provide. The Atlantic Shores South Wind Project is a key part in helping move the needle to meet our clean energy goals as well as support American manufacturing jobs throughout the supply chain.”

Thursday, May 25, 2023: 9:00am CDT – Featured Panel on “The Promise of Green Hydrogen”

The closing executive panel at CLEANPOWER will focus on a discussion of the coming hydrogen revolution. This panel will bring the latest insights on the development of green hydrogen at scale and what it means for decarbonizing heavy industrial sectors.

CLEANPOWER 2023 will also include previously announced keynote speakers:   

• John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation
• Gen. Stanley McChrystal (Ret.), Former Commander of U.S. and International Forces in Afghanistan
• Sen. Bill Cassidy, M.D. (R-LA)
• Gov. John Bel Edwards (D-LA)
• Earvin “Magic” Johnson

Additional energy leaders speaking at CLEANPOWER 2023:

• Jason Allen – CEO, Leeward Renewable Energy
• Amy Andryszak  –  President and CEO, Interstate Natural Gas Association of America
• Laura Beane – President, Vestas North America
• Jesse Canzler – Vice President, General Manager, Mortenson
• Marty Durbin – President, U.S. Chamber of Commerce Global Energy Institute
• Theresa Eaton – CEO and Owner – WECS Renewables
• Maria Korsnick – President and CEO, Nuclear Energy Institute
• Lacy McManus – Executive Director of Future Energy, Greater New Orleans, Inc
• Jim Murphy – President and Corporate Business Leader, Invenergy
• Daniel Shugar – CEO, Founder – NEXTracker, Inc
• Krista Tanner – Chief Business Officer and Senior Vice President, ITC Holdings Corp.

Conference registration, exhibitor information and sponsorship opportunities can be found at CLEANPOWER 2023.

Media registration for a press pass can be found here.

“The IRA’s domestic content incentive represents a monumental opportunity to continue growing our domestic clean energy supply chain. This guidance will help provide clarity around its eligibility requirements, unlocking billions of dollars of investment in American clean energy manufacturing and its workforce. While the industry continues assessing the impact of today’s action, this is an important step in helping to secure our energy independence and advance our shared goals of deploying more clean energy, strengthening the domestic manufacturing base, and providing jobs for American workers.”