BERLIN — The world is set to add a record amount of renewable electricity capacity this year as governments and consumers seek to offset high energy prices and take advantage of a boom in solar power, according to a new report.
The International Energy Agency said high fossil fuel prices — resulting from Russia’s attack on Ukraine — and concerns about energy security had boosted the rollout of solar and wind power installations, which are expected to reach 440 gigawatts in 2023.
Martin Meissner, Associated Press
Rooftops on private houses are covered by solar panels to produce renewable electricity in Duelmen, Germany, on May 3. The world is set to add a record amount of renewable electricity capacity this year as governments and consumers seek to offset high energy prices and take advantage of a boom in solar power.
That’s about a third more than the world added the previous year, taking the global installed capacity to 4,500 GW, roughly the combined total power output of the United States and China, the Paris-based agency said Thursday.
“The global energy crisis has shown renewables are critical for making energy supplies not just cleaner but also more secure and affordable,” said Fatih Birol, the IEA’s executive director.
“Governments are responding with efforts to deploy them faster,” he said. Recent incentives to install renewables introduced by the Biden administration are already driving a significant uptake in the United States.
About two-thirds of this year’s increase in renewable power capacity will come from photovoltaic, with both large-scale solar farms and consumer rooftop installations seeing significant growth.
IEA said manufacturing capacity for PV components was also surging, especially in China.
Patrick Pleul, Associated Press
The sun reflected in solar panels of the EnBW solar park at Gottesgabe, Germany, on July 1, 2022.
Construction of new wind farms is predicted to rebound after a period of low growth. However, in contrast to solar manufacturing, the supply chains for wind turbines aren’t growing fast enough to meet demand, the agency said.
Birol also cautioned that power grids must be upgraded and expanded to cope with the intermittent nature of solar and wind power, which require a fundamentally different approach by network operators compared with existing coal, gas or nuclear plants.
The report forecast that several European countries, including Spain, Germany and Ireland, will see wind and solar’s combined share of their overall annual electricity generation top 40% by 2024.
Shifting the global economy away from fossil fuels is one of the most important steps for reducing greenhouse gas emissions that cause global warming.
Experts say that to meet the Paris climate accord’s goal of limiting temperature rise since pre-industrial times to 2.7 Fahrenheit, emissions need to be halved by 2030 and cut to “net zero” by mid-century.
The International Renewable Energy Agency, a separate body, has called for a major increase in wind and solar investments. Nations are expected to discuss setting an international target for the rollout of renewable energy at this year’s U.N. climate summit in Dubai.
-
Report: Renewable energy surges, driven by solar boom and high fuel prices
VGC // Getty Images
When Congress passed the Inflation Reduction Act in August 2022, billions of dollars were appropriated and millions of acres were reserved for renewable energy expansion. This unprecedented investment—an estimated $369 billion for climate and energy funding—spurred private industry to get in on the action. Morningstar Direct, as reported by CNBC, found that upwards of $425 million had been invested by private enterprise into U.S. renewable energy exchange-traded funds as of Aug. 12, less than a week before President Biden signed the IRA into law.
One of the most popular forms of sustainable renewable energy is solar power. Solar photovoltaic energy is produced when sunlight is converted into electricity. The most effective way to harness sunlight for electricity on an industrial scale is by planting large silicon panels on solar farms. Large utility-scale solar energy plants have become more affordable and efficient over the decades, and are seeing widespread installation as the green energy boom accelerates, particularly in areas like California and the Southwest.
Solar generation is the fastest-growing renewable energy source. Not only are PV cells looking more attractive to homeowners, but commercial developments have also begun to see the advantage of including solar collection systems in new construction or retrofitting existing structures for solar capability.
The Inflation Reduction Act created the Energy Infrastructure Reinvestment Program, a loan program designed to help communities repurpose existing energy infrastructure such as decommissioned coal plants and oil pipelines, as well as refit homes and businesses with new PV technology.
With solar energy investment now top-of-mind for both government and private enterprise, Rocket Solar compiled data from the Energy Information Administration to analyze solar utility use and development and how it's grown over the past 30 years.
VGC // Getty Images
When Congress passed the Inflation Reduction Act in August 2022, billions of dollars were appropriated and millions of acres were reserved for renewable energy expansion. This unprecedented investment—an estimated $369 billion for climate and energy funding—spurred private industry to get in on the action. Morningstar Direct, as reported by CNBC, found that upwards of $425 million had been invested by private enterprise into U.S. renewable energy exchange-traded funds as of Aug. 12, less than a week before President Biden signed the IRA into law.
One of the most popular forms of sustainable renewable energy is solar power. Solar photovoltaic energy is produced when sunlight is converted into electricity. The most effective way to harness sunlight for electricity on an industrial scale is by planting large silicon panels on solar farms. Large utility-scale solar energy plants have become more affordable and efficient over the decades, and are seeing widespread installation as the green energy boom accelerates, particularly in areas like California and the Southwest.
Solar generation is the fastest-growing renewable energy source. Not only are PV cells looking more attractive to homeowners, but commercial developments have also begun to see the advantage of including solar collection systems in new construction or retrofitting existing structures for solar capability.
The Inflation Reduction Act created the Energy Infrastructure Reinvestment Program, a loan program designed to help communities repurpose existing energy infrastructure such as decommissioned coal plants and oil pipelines, as well as refit homes and businesses with new PV technology.
With solar energy investment now top-of-mind for both government and private enterprise, Rocket Solar compiled data from the Energy Information Administration to analyze solar utility use and development and how it's grown over the past 30 years.
-
Report: Renewable energy surges, driven by solar boom and high fuel prices
Rocket Solar
In 2021, California's energy costs were the third highest in the nation, with costs higher only in Hawaii and Alaska. To offset costs and reduce fossil fuel emissions, the Biden administration has dedicated more than 10 million acres of federally protected desert land in the state to solar energy farm development. Most of these acres are in the southern half of the state.
Other areas of the South, most notably Texas, are also in line for new solar installations. Traditionally thought of as oil and gas country, Texas announced plans to add 10 gigawatts (GW) of solar power by the end of 2023, and it did so in the middle of the pandemic amidst burgeoning economic uncertainty. Should the state meet this goal, it would represent one-third of the 30 GW expected to be brought into service nationwide in the coming year.
Rocket Solar
In 2021, California's energy costs were the third highest in the nation, with costs higher only in Hawaii and Alaska. To offset costs and reduce fossil fuel emissions, the Biden administration has dedicated more than 10 million acres of federally protected desert land in the state to solar energy farm development. Most of these acres are in the southern half of the state.
Other areas of the South, most notably Texas, are also in line for new solar installations. Traditionally thought of as oil and gas country, Texas announced plans to add 10 gigawatts (GW) of solar power by the end of 2023, and it did so in the middle of the pandemic amidst burgeoning economic uncertainty. Should the state meet this goal, it would represent one-third of the 30 GW expected to be brought into service nationwide in the coming year.
-
-
Report: Renewable energy surges, driven by solar boom and high fuel prices
Rocket Solar
Texas both produces and consumes the most electricity of any state, yet its power grid is not as robust as one would expect given that fact, as evidenced by its tragic failure in February 2021 that led to 246 deaths. The Electric Reliability Council of Texas, which operates the state's electric grid and tracks both wind and solar generation, sees the value in ramping up alternative, renewable energy sources. Giant utility-scale projects prosper in western Texas where intense sun and vast tracts of flat open land create perfect conditions for solar generation.
The state's largest solar plant, the 2W Permian Solar Project Hybrid, located in Andrews County near the border of New Mexico, holds 1.3 million solar panels and is estimated to be capable of producing enough energy to power more than 80,000 homes. The rurality and generally flat topography of Andrews County lends itself to solar field development, which has drawn corporate attention most recently from Best Buy, which bankrolled the Prospero 2 solar farm in its effort to become carbon neutral by 2040.
Rocket Solar
Texas both produces and consumes the most electricity of any state, yet its power grid is not as robust as one would expect given that fact, as evidenced by its tragic failure in February 2021 that led to 246 deaths. The Electric Reliability Council of Texas, which operates the state's electric grid and tracks both wind and solar generation, sees the value in ramping up alternative, renewable energy sources. Giant utility-scale projects prosper in western Texas where intense sun and vast tracts of flat open land create perfect conditions for solar generation.
The state's largest solar plant, the 2W Permian Solar Project Hybrid, located in Andrews County near the border of New Mexico, holds 1.3 million solar panels and is estimated to be capable of producing enough energy to power more than 80,000 homes. The rurality and generally flat topography of Andrews County lends itself to solar field development, which has drawn corporate attention most recently from Best Buy, which bankrolled the Prospero 2 solar farm in its effort to become carbon neutral by 2040.
-
Report: Renewable energy surges, driven by solar boom and high fuel prices
Rocket Solar
In 2006, the California Public Utilities Commission approved a statewide $3 billion plan to subsidize commercial and residential solar installations. A solar cell was developed that finally broke the "40% threshold"—meaning the cell had a sunlight-to-energy conversion of more than 40%. Silicon Valley became a flashpoint for new solar technology development.
In the intervening years, solar plants have grown exponentially in both size and number. In 2010, there were little more than 100 utility-scale plants in the U.S.; as of 2020, that number grew six times larger.
The Infrastructure Investment and Jobs Act of 2021 added $10 million to the Department of Energy's budget for solar manufacturing and recycling, bringing it to $56 million. International asset management companies, such as Copenhagen Infrastructure Partners K/S, are doubling down on renewable energy resources. CIP announced a partnership with Bank of America Corp. in 2020 to finance the construction of a solar project in Pecos County, Texas, the state that is already the largest source of electricity in the country.
Rocket Solar
In 2006, the California Public Utilities Commission approved a statewide $3 billion plan to subsidize commercial and residential solar installations. A solar cell was developed that finally broke the "40% threshold"—meaning the cell had a sunlight-to-energy conversion of more than 40%. Silicon Valley became a flashpoint for new solar technology development.
In the intervening years, solar plants have grown exponentially in both size and number. In 2010, there were little more than 100 utility-scale plants in the U.S.; as of 2020, that number grew six times larger.
The Infrastructure Investment and Jobs Act of 2021 added $10 million to the Department of Energy's budget for solar manufacturing and recycling, bringing it to $56 million. International asset management companies, such as Copenhagen Infrastructure Partners K/S, are doubling down on renewable energy resources. CIP announced a partnership with Bank of America Corp. in 2020 to finance the construction of a solar project in Pecos County, Texas, the state that is already the largest source of electricity in the country.
-
-
Report: Renewable energy surges, driven by solar boom and high fuel prices
Rocket Solar
The Southwestern U.S. typically receives the strongest amount of direct sunlight and has, relative to other U.S. regions, less tree canopy and foliage coverage on the ground—as well as generally warmer temperatures. While any area in the U.S. has the potential to harness and benefit from solar power, this Southwest region—which includes parts of California, Nevada, Arizona, Utah, and New Mexico—has the greatest large-scale potential. The region averages between 6.5 to 7.5 daily kilowatt hours (kWh) per square meter, the highest annual direct sunshine in the nation according to the National Solar Radiation Data Base.
Arizona's solar PV plants, for example, have outperformed solar generation in every other state—but are closely followed by Utah, California, and Nevada. What is particularly telling is the fact that Arizona has just one-fifth the installed capacity of California and yet it outperformed the Golden State from 2014-2017, according to EIA data. PV modules have the greatest capacity for PV power on large tracts of land with direct, high-angle sun exposure, making Southwestern states prime real estate for solar farms.
Regions without year-round sunny weather such as New England or the East Coast still average between 4 to 5 kWh a day per square meter, so don't count them out entirely. In fact, North Carolina, New Jersey, Massachusetts, and New York are among the top 10 states for solar adoption with the most solar megawatts installed.
This story originally appeared on Rocket Solar and was produced and distributed in partnership with Stacker Studio.
Rocket Solar
The Southwestern U.S. typically receives the strongest amount of direct sunlight and has, relative to other U.S. regions, less tree canopy and foliage coverage on the ground—as well as generally warmer temperatures. While any area in the U.S. has the potential to harness and benefit from solar power, this Southwest region—which includes parts of California, Nevada, Arizona, Utah, and New Mexico—has the greatest large-scale potential. The region averages between 6.5 to 7.5 daily kilowatt hours (kWh) per square meter, the highest annual direct sunshine in the nation according to the National Solar Radiation Data Base.
Arizona's solar PV plants, for example, have outperformed solar generation in every other state—but are closely followed by Utah, California, and Nevada. What is particularly telling is the fact that Arizona has just one-fifth the installed capacity of California and yet it outperformed the Golden State from 2014-2017, according to EIA data. PV modules have the greatest capacity for PV power on large tracts of land with direct, high-angle sun exposure, making Southwestern states prime real estate for solar farms.
Regions without year-round sunny weather such as New England or the East Coast still average between 4 to 5 kWh a day per square meter, so don't count them out entirely. In fact, North Carolina, New Jersey, Massachusetts, and New York are among the top 10 states for solar adoption with the most solar megawatts installed.
This story originally appeared on Rocket Solar and was produced and distributed in partnership with Stacker Studio.
