ACP: Record amount of utility-scale clean power capacity added in Q3
Some 5,551 megawatts (MW) of utility-scale clean power capacity were brought online in the third quarter, according to the Clean Power Quarterly Market Report, produced by the American Clean Power Association (ACP).
The volume of third-quarter installations is enough to power 813,000 homes. It represents a 13 percent increase over the same period a year ago and established a record for the strongest third quarter to date.
The U.S. now has over 243 gigawatts (GW) of operating clean power. This accounts for 16 percent of U.S. electricity and is enough electricity to power nearly 65 million homes. In the most recent quarter alone, clean energy developers began commercial operations at 88 projects across 24 states.
“The demand for American clean energy is undeniable,” ACP CEO Jason Grumet said. “Even as we face a number of near-term challenges, these record-breaking numbers tell us that the U.S. clean energy sector continues to grow on a healthy, long-term trajectory.”
Looking at various segments, 2,142 MW / 6,227 MWh of grid-scale battery storage was installed in the third quarter, bringing year-to-date installations to 4,374 MW / 13,444 MWh. This amount has already exceeded the total 2022 installations in just nine months.
Further, there was 3,121 MW of solar installed in the quarter, outpacing the rate of installations in 2022 but slightly behind 2021 volumes. Also, 288 MW of land-based wind capacity were commissioned in the third quarter, a 77 percent decline year-over-year.
Overall, installations of solar, wind, and storage fell 6 percent year-to-date as a slow first quarter and a sharp decrease in third quarter wind capacity additions contributed to the decline.
The report also noted that while the full impacts of the Inflation Reduction Act (IRA) have yet to be determined, the IRA’s effect on the clean energy industry is already evident in the growth in utility-scale project development pipeline.
As of the end of the third quarter, the project pipeline increased 10 percent year-over-year to 145,545 MW. There are currently 59,568 MW under construction and 85,977 MW in advanced development. Among the segments, the battery storage pipeline is strongest, having grown by 50 percent year-over-year. The solar pipeline has increased 8 percent. However, solar accounts for 58 percent of clean power capacity currently under development. Battery storage and land-based wind each represent 15 percent of the pipeline, with offshore wind making up 12 percent.
In addition, power purchase agreement (PPA) announcements faced headwinds in the quarter as 3.1 GW of PPAs were announced, a 55 percent drop from the same period in 2022.
California accounted for 1,900 MW, or 34 percent of clean power commissioned in the third quarter. Texas and Arizona were next with 949 MW and 516 MW respectively. Cumulatively in 2023, California leads the nation with 3,031 MW installed, followed by Texas, which added 2,381 MW to the grid and Florida, which added 1,578 MW.
