Colorado is set to significantly bolster its clean energy portfolio in the coming years, with a recent study from the American Clean Power Association (ACP) shedding light on the state's ambitious plans. According to the “Clean Energy Powers Colorado” report, Colorado is on track to witness a remarkable 136% increase in renewable energy capacity by the year 2030, injecting a substantial 9.5GW into its energy grid.
Of this impressive capacity boost, Colorado is slated to introduce 4GW of solar power, alongside 4.25GW of land-based power and a crucial 1.25GW of battery storage. The report, which surveyed developments up to July 2023, revealed that approximately 2.32GW of utility-scale clean energy capacity was under active development. Impressively, solar projects accounted for a significant portion, with 1.95GW, representing 84% of the total. Wind energy trailed behind with only 321MW (14%), while storage projects comprised a modest 45MW (2%).
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These substantial developments come at a considerable cost, with an expected capital investment of a staggering US$12 billion projected by 2030.
However, it's worth noting that solar capacity, though on the rise, currently occupies a relatively modest share of Colorado's clean energy capacity. As of July 2023, of the total clean energy capacity amounting to 6,982MW, solar contributed 1,551MW (22.2%), while wind power dominated with 5,194MW (74.4%). Storage capacity lagged behind at 237MW, constituting 3.4% of the state's overall clean energy capacity.
Colorado has witnessed substantial private sector investments, tallying up to US$13.6 billion to date, with a predominant focus on wind energy. Currently, wind and solar sources collectively supply over 33% of the state's electricity.
In addition to the energy capacity expansion, Colorado is poised to become a significant player in solar manufacturing. The state boasts 12 operational manufacturing facilities, with the solar sector contributing 6,408 jobs as of the fourth quarter of 2022. An exciting development in this regard is the joint venture established by Indian module manufacturer Vikram Solar in collaboration with private equity firm Phalanx Impact Partners and venture capital company Das & Co. The venture, named VSK Energy, is poised to invest up to US$1.5 billion in two construction phases, commencing with a module assembly plant in Brighton, Colorado, supported by a US$250 million investment. Operations are scheduled to commence in 2024, initially targeting an annual capacity of 2GW, with plans for expansion to 4GW.
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Furthermore, in July, Switzerland-headquartered module manufacturer Meyer Burger announced its intention to construct a solar cell plant in Colorado, with an initial annual capacity of 2GW. These ventures underscore Colorado's emergence as a promising hub for solar manufacturing in the United States.
