Review and Future Prospects of the USA's Renewable Energy Market: Overcoming Challenges and Harnessing Opportunities.

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By the end of 2022, the cumulative installed capacity of renewable energy projects in the USA had reached 227.4 GW. This capacity comprised 144.2 GW of onshore wind energy, 74.1 GW of solar energy, 9 GW/25.2 GWh of battery storage capacity, and 42 MW of offshore wind energy.

Throughout the year, 25.1 GW of new renewable energy projects were installed across the country, representing a 16% decrease compared to the record year of 2021 and a 12% decrease relative to 2020. This decline was primarily due to supply chain constraints, interconnection challenges, sourcing difficulties for solar panels, and policy uncertainties associated with the phasing down of the previous PTC mechanism.

Texas, California, and Oklahoma led the states in terms of installation volume, with Texas alone accounting for 36% of annual installations. For the entire year, solar energy contributed the most with 12.7 GW of installations, a decrease compared to 2021 and below expected figures for 2022.

2022 marked a record year for battery storage, with 4 GW/12.2 GWh commissioned. The cumulative capacity now stands at 9 GW. Furthermore, 8.5 GW of new onshore wind projects were installed due to the declining value of the production tax credit available for wind energy.

However, 2022 installations were below forecast with more than 17.4 GW of renewable energy projects delayed in the fourth quarter alone; the total delayed projects amount to 53 GW. Solar energy represents the majority of these delays, accounting for 64%, with wind energy and battery storage contributing 21% and 15%, respectively. Supply chain constraints, interconnection challenges, and trade restrictions were the primary reasons for these delays.

According to ACP reports, there was a pipeline of 93 GW in advanced development by the end of 2022. The leaders in this development were Texas (24.5 GW), California (12.1 GW), and New York (10.5 GW). Projections for 2027 suggest an increase of 35 GW of onshore wind energy and 78 GW of solar energy. In Texas alone, there are already 30 GW of renewable energy projects with signed interconnection agreements.

Despite the challenges faced in 2022, the enactment of the Inflation Reduction Act (IRA) offers heightened growth expectations. Predictions now suggest that, over the next ten years, the industry will grow to five times its current size.

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Key Highlights:

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1. The cumulative installed capacity of renewable energy projects in the USA reached 227.4 GW by the end of 2022.
2. 25.1 GW of new renewable energy projects were installed in 2022, marking a decrease of 16% and 12% compared to 2021 and 2020 respectively.
3. Supply chain constraints, interconnection challenges, sourcing difficulties for solar panels, and policy uncertainties were cited as causes for decline.
4. Texas, California, and Oklahoma led the states in installation volume, with Texas accounting for 36% of annual installations.
5. Solar energy was the most installed energy type throughout the year, despite a marked decrease compared to 2021.
6. A record 4 GW/12.2 GWh of battery storage was commissioned in 2022.
7. Over 17.4 GW of renewable energy projects were delayed in the fourth quarter, total delayed projects amount to 53 GW.
8. ACP reports showed 93 GW in advanced development by end of 2022, led by Texas, California, and New York.
9. Projections for 2027 indicate potential increases of 35 GW in onshore wind energy and 78 GW in solar energy.
10. The recently enacted Inflation Reduction Act (IRA) signals significant growth for the industry over the next ten years, suggesting it could grow five times its current size.

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CJR Renewables in the USA: A Promising Start and Promising Future

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As we reflect on our fruitful journey in the U.S. market, our preparation in 2022 allowed CJR Renewables to lay a solid foundation and expand our team with talented industry professionals. This groundwork put us in the prime position for leveraging the opportunities brought forth by the IRA, whilst being surrounded by some of the market's foremost operators in wind and solar energy.

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Key Highlights:

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1. Successful entry into the U.S. renewable energy market in 2022, focusing on sustainable goals and team expansion.
2. Registered Apprenticeship Program aligning with the Inflation Reduction Act (IRA).
3. 2024 Vision: Enhance competitiveness, resource allocation, and strategic partnerships/acquisitions.?

Our voyage so far has been energizing, and we extend sincere thanks to our team members and partners for their unwavering support. Together, let us continue to seize exciting opportunities in this growing market and reinforce CJR Renewables as a top-tier EPC contractor in the world of renewable energy.