US clean energy additions slow in 2022 amid policy, market handicaps

The US clean energy industry installed 9.6 GW of utility-scale solar, wind and battery storage in the fourth quarter of 2022, the lowest fourth quarter result since 2019, the American Clean Power Association (ACP) said on Thursday.

Full-year clean energy installations were 25.1 GW, down 16% from a record level in 2021 and down 12% from 2020.

The association said the slowdown was due to a mix of policy and market challenges, including supply chain issues, delays to grid connections, unclear trade restrictions, permitting obstacles and uncertainty over the implementation of the Inflation Reduction Act (IRA). ACP chief executive Jason Grumet called for addressing outdated regulations and cumbersome permitting processes which are holding back all energy technologies.

Solar added 4.7 GW in the fourth quarter and 12.6 GW in the full year, a slight fall from 2021.

Wind had a strong quarter with 4 GW of installations, but the annual additions of 8.5 GW marked a 37% drop compared to the previous year.

Battery storage set a record with 4 GW installed in 2022 and now make up 12% of the development pipeline.

In terms of locations, Texas installed the most clean power last year -- 9.2 GW. It is followed by California with 4.7 GW and Oklahoma with 1.5 GW.

Interest in power purchase agreements (PPA) remains strong, with 7.5 GW of contracts announced in the fourth quarter and 28.9 GW in the full year, which is close to the record 29.9 GW seen in 2021.

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