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Utility-Scale Renewables To Make Up 14% Of U.S. Electricity This Year

U.S. electricity generated from utility-scale renewable energy projects is expected to grow by 9% this year based on projections in the U.S. Energy Information Administration’s (EIA) latest Short-Term Energy Outlook. Much of the growth comes from new installations of wind and solar plants and increases in hydroelectric generation after a relatively dry 2015.

In 2016, EIA says electricity from utility-scale renewable sources is expected to account for 14% of the total electricity generated in the U.S., with wind and solar contributing 5.2% and 0.8%, respectively.

Increases in renewable capacity and generation are influenced by federal, state and local policies. Interestingly, EIA expects the extension of the federal investment and production tax credits passed at the end of 2015 to have little effect on renewable capacity additions in 2016 because most utility-scale plants that will enter service this year are already being developed, including several wind and solar projects. Impacts of the extensions in 2017 depend on how many wind and solar projects are already in the development queue but not yet under construction, according to the agency.

Furthermore, EIA says the U.S. Environmental Protection Agency’s approval of the Clean Power Plan in August 2015 may also affect new renewable builds over the next several years, but these near-term effects will be less certain until states start to lay out their implementation plans.

EIA expects continued growth in utility-scale solar power generation, which is projected to average 129 GWh/day in 2017 - an increase of 45% from the 2016 level. Utility-scale solar power will average 1.1% of total U.S. electricity generation in 2017.

Although solar growth has historically been concentrated in customer-sited distributed generation installations (rooftop panels), EIA expects utility-scale solar capacity will increase by 126% (13 GW) between the end of 2014 and the end of 2016, with 4.9 GW of new capacity being built in California. Other states leading in utility-scale solar capacity additions include North Carolina and Nevada, which, combined with California, account for about two-thirds of the projected utility-scale capacity additions for 2015 and 2016.

EIA says wind power capacity, which starts from a significantly larger installed capacity base than solar, grew by 13% in 2015, and it is forecast to increase by 14% in 2016 and by 3% in 2017.

Changes in electricity generation from other renewable fuels in 2016 are expected to be flat (in the case of biomass) or relatively modest (4% increase in geothermal). Electricity generation from hydropower facilities is expected to increase 5% in 2016 based on expectations of high precipitation during El Nino, with water levels recovering from the relatively dry years in recent history.

 

U.S. Solar Will Reach Record Levels In 2016: IHS Report

With the recent multiyear extension of the investment tax credit (ITC) in the U.S., solar photovoltaic installations will grow 60% year-over-year, reaching 15 GW this year, according to a report from IHS Inc.

The report says PV installations in the U.S. will reach record levels this year primarily due to strong demand for utility-scale solar, and the West and Southwest will account for the majority (65%) of total demand.

“The extension of the tax credit relieves pressure on the industry to complete projects ahead of the 2016 deadline and breathes new life into the U.S. solar industry,” comments Camron Barati, North America solar analyst for IHS Technology. “Many feared the solar industry in the U.S., which has experienced tremendous growth over the last several years, might collapse in 2017 without an extension of the ITC.”

The report says the U.S. currently has a 50 GW pipeline of commercial- and utility-scale PV projects from this year to 2019. Although all market segments are expected to benefit from the ITC extension, utility-scale PV is expected to benefit most and account for over half of newly added capacity from this year to 2019.

“Residential and commercial PV will experience sustained growth through the forecast period,” Barati says. “But mounting pressure from utilities to revise retail net-metering rates and the falling cost of large-scale generation will limit growth opportunities in the U.S. outside of well-established state markets.”

In 2017, the report says the U.S. PV market will decline by 30% due to lower demand for utility-scale PV, but it will grow every year through the remainder of the forecast period. The Northeast will be the only region in the country that will not experience a decline in 2017 due to a lower reliance on utility-scale PV demand and a higher proportion of residential and commercial PV demand.

Furthermore, IHS has identified three U.S. states that are projected to install over 1 GW this year: California, Nevada and Texas.

 

DOE Unveils $21M To Tackle Deployment Barriers And Soft Costs

The U.S. Department of Energy (DOE) has announced $21 million in new funding to help lower solar energy deployment barriers and expand access to solar energy in the country.

The department says it is making $13 million available to help states take advantage of falling solar prices and maximize the benefits of solar electricity through energy and economic strategic planning. This new program will offer technical and analytical support in the development and implementation of solar energy deployment plans.

In 2015, solar was the second-most installed source of new electric generating capacity - but this remarkable growth has been limited to a handful of states, says the DOE. Many states do not have the knowledge, time or staff resources needed to develop a robust solar deployment strategy. They might not know where to begin with “going solar” but require technical and analytical support. The DOE says this program will help to establish partnerships between states and utilities and provide them with technical support, enabling teams to develop strategies to determine optimal solar energy targets that will maximize emissions reductions, create jobs, expand energy access and increase grid resiliency.

An additional $8 million under this funding opportunity will support research on solar energy innovation and technology adoption patterns in order to increase understanding of solar deployment barriers and other “soft costs.”

By combining cutting-edge research tools with the creation, analysis and use of data and information, this second round of the Solar Energy Evolution and Diffusion Studies program will partner researchers with data and energy experts. Through this collaboration, they will examine how solar technologies, the electric grid system and the institutions that comprise the solar business marketplace support or inhibit the evolution and adoption of solar energy.

“As the cost of solar technology continues to fall, it’s more important than ever that we lower the other barriers to solar deployment - soft costs,” explains David Danielson, the DOE’s assistant secretary for energy efficiency and renewable energy. “The funding announced today will provide technical and analytical assistance to states in setting and meeting their renewable energy goals. This initiative will leverage decision science and solar datasets to build our understanding of how and why solar technologies are adopted to make it faster, easier and more affordable for families and businesses to choose solar to power their daily lives.”

According to the DOE, the U.S. has installed more than 24 GW of solar power - enough to power 5 million average American homes - and deployment is expected to accelerate as costs continue to fall and more residential, commercial and utility-scale projects come online. The DOE says these new investments support the broader goals of the SunShot Initiative to drive down the cost of solar power.

 

Hawaiian Co-Op Hits 90% Renewable Energy Milestone

Kaua‘i Island Utility Cooperative (KIUC) used a combination of renewable resources, including a lot of solar and some biomass and hydropower, to generate 90% of the island’s electricity during brief periods on four separate days in January. Furthermore, the co-op says it is on track to reach its renewables target years ahead of schedule.

“That a small co-op on Kaua‘i can become a world and national leader in energy transformation in such a brief time is something all of our members can be proud of and celebrate,” comments David Bissell, president and CEO of KIUC. “In five years, we’ve gone from being a place that’s almost totally dependent on imported oil for power generation to a place that is an industry leader in its adoption of renewable energy.”

In January, renewable resources met an average of 77% of Kaua‘i’s energy demand during the peak solar hours, spiking to 90% on four separate days. On a typical day, the renewable percentages break down to solar at 62%, biomass at 8% and hydropower at 7%.

On an annual basis, renewable resources are now 38% of KIUC’s fuel mix for generating electricity - up from 8% in 2010. The remaining 62% is oil, which fuels the bulk of Kaua‘i’s power generation from 6 p.m. to 10 a.m.

KIUC says key benefits of its renewable portfolio strategy include a 30% reduction in oil consumption from 2010 to this year and a reduction in greenhouse-gas emissions to well below the 1990 level. The co-op’s strategic plan calls for it to use renewable resources to generate at least 50% of its electricity by 2023; KIUC says it is now on track to hit that target by 2019.

 

PG&E Launches Program To Let All Customers Go 100% Solar

Pacific Gas and Electric Co. (PG&E) has officially launched its previously announced program to extend the option for 100% solar power to all customers, whether or not they are planning to install rooftop solar.

Under PG&E’s Solar Choice program, customers can purchase half or all of their electric power from solar energy locally sourced in northern and central California for what the utility calls a modest charge. PG&E says this will allow customers to reduce their carbon footprint and drive the development of new solar resources within the state.

“PG&E’s Solar Choice program is all about giving customers more choice and control over their energy and bringing the benefits of solar to our communities. Our customers already enjoy some of the cleanest power in the country. Now, they can directly contribute to bringing more renewable energy onto the electric grid - a win for our customers and for California,” says Laurie Giammona, PG&E’s senior vice president and chief customer officer.

Additionally, participating organizations could qualify for Leadership in Energy and Environmental Design points for green building leadership, as well as the U.S. Environmental Protection Agency’s Green Power Partnership for electricity generated from renewable resources.

Kelly Slater Wave Co. is one of the first California businesses to partner with PG&E’s Solar Choice to go 100% solar. The company is powering its new wave technology and training center in California’s Central Valley.

“We are committed to encouraging sustainable development at any site using our technology. As part of this commitment, we are pleased that our first site in central California is 100 percent powered by solar energy through PG&E’s Solar Choice,” says Noah Grimmett, the company’s general manager.

Late last year, PG&E announced that all of its operations service centers - nearly 100 facilities - will be fully powered by solar energy through its Solar Choice program.

PG&E says it has already connected more than 215,000 solar customers to the grid and anticipates that its Solar Choice program will extend access to solar to approximately 40,000 additional homes and businesses across the company’s service area.