US Q3 clean energy instals surge as solar and storage leave wind in the dust: ACP

The US installed 10.2GW of grid-scale clean power capacity in the third quarter, a record for the period despite a weak performance by onshore wind, formerly the industry’s main growth engine, according to latest data from American Clean Power Association (ACP).

Additions totaled 6.25GW of solar, 3.54GW of storage, and 396MW of onshore wind. No offshore wind capacity entered commercial operation.

“American-made clean power is meeting the moment, providing the resources necessary to continue delivering affordable and reliable power to communities across the country,” said John Hensley, senior vice president of markets and policy analysis, at the national trade group.

“The record pace of clean power installations is delivering not only for the power grid but for the US economy,” he added.

While onshore wind additions increased 31% from an unusually depressed quarter in 2023, activity was a fraction of what the sector generated in the period over the last decade.

Developers at the end of September had 24.4GW of onshore wind in their project pipelines with 15.7GW under construction and 8.7GW in advanced development.

ACP defines under construction as a “construction team has begun work on the ground at the project site.”

Advanced development is a project not under construction, but “with a PPA, firm equipment order, or moving forward with plans to be placed under utility ownership as of the end of the most recent quarter.”

Sector activity is underpinned by federal tax credits whose future is uncertain when the next Congress convenes on 3 January. Republicans, who will control both houses, could toughen both terms and conditions for projects to access credits.

The US on 30 September had slightly more than 153GW of onshore wind installed nationwide. The Southeast is the only region without turbines spinning given competition from coal, natural gas, nuclear, and relatively low wind speeds.

Solar comprised 61% of third quarter clean power installations with Texas home to three of the four largest projects that came online.

Additions totaled 19.5GW this year through September, more than double a year ago, according to ACP. It forecasts 2024 installations will shatter the previous annual record of 21.3GW last year.

Texas, which has been the number one wind state for more than a decade, now also leads in utility-scale solar with 24.4GW of capacity, surpassing California with 21.2GW. Florida is a distant third at 9.9GW.

The solar pipeline increased 9% in the third quarter to reach a record 90.9GW with 41.6GW under construction and 49.3GW in advanced development. There was 115.5GW of grid-scale storage in operation on 30 September.

The industry installed 3.54GW of battery storage capacity in the third quarter, up 58% from a year earlier. The battery storage pipeline rose 83% to 39.23GW.

ACP reported that 6.84GW of PPAs were executed in the third quarter, a 66% increase from a year earlier, with solar dominating deals with 79%. Onshore wind deals were 10% with the remainder battery storage.

Onshore wind has lost ground to solar, in part due to higher average PPA prices that have significantly outpaced those for solar since second quarter 2021.

“In recent years, early purchasers of wind power have also sought to balance their clean energy portfolios with more solar,” the report noted.

Installation of hybrid projects, a fast-growing market segment, surged 226% in the third quarter versus a year earlier to 3.9GW. Solar plus storage projects comprised 93% of activity followed by wind plus solar (7%).

Year-to-date, 6,45GW of hybrid capacity has been brought online, a 212% increase from the same point in 2023.