During the third quarter of 2023, the renewable energy sector in the United States witnessed a milestone, with a record-breaking addition of 5.5 gigawatts (GW) of utility-scale renewable capacity, spearheaded by solar installations, according to the American Clean Power Association (ACP).
The ACP's Clean Power Quarterly Market Report highlights that this marks the strongest Q3 to date, reflecting a notable 13% increase compared to the same period in 2022. Solar power continues to lead the way in utility-scale installations, contributing 3.1GW during the quarter. This figure marks an increase from the 2.7GW added in the previous quarter, although it falls slightly behind the numbers from 2021, showcasing the enduring growth of solar energy in the country.
The cumulative installed capacity of clean energy in the US now stands at an impressive 243GW, generating 16% of the nation's electricity. California, a leader in clean energy adoption, added the most renewable capacity during the first nine months of 2023, with 3GW, of which 1.9GW were added in Q3 alone. This accounts for one-third of all power commissioned during the quarter. Texas and Florida followed closely with 2.3GW and 1.6GW added in 2023, respectively.
Notably, the renewables project pipeline showed a remarkable 10% increase compared to the same period in 2022, now totaling 145GW, with nearly 60GW already under construction and 86GW in advanced development. Solar projects continue to dominate the pipeline, accounting for 58% of all clean power capacity in development.
Another burgeoning sector is grid-scale battery storage, which has surpassed the installation figures from 2022 within just nine months, boasting 4.3GW and 13.4 gigawatt-hours (GWh) of capacity installed.
Despite the record-breaking installations, power purchase agreements (PPAs) exhibited a different trend, with prices on the rise during Q3, reversing the decline observed in the previous quarter. PPA numbers were down by 55% compared to the same period in 2022, with 3.1GW of PPAs announced in Q3, reflecting the complex dynamics within the market.
Solar photovoltaic (PV) projects constituted 59% of all PPA announcements in Q3, although numbers were down by 59% year-over-year. These fluctuations in PPA activity point to the evolving landscape of clean energy procurement.
Jason Grumet, CEO of the ACP, emphasized the undeniable demand for American clean energy, highlighting the sector's growth trajectory and resilience even in the face of certain short-term challenges. The report showcases the industry's commitment to a sustainable, long-term future.
