
US sets record with 34GW of grid-scale clean energy installed in 2023
The American Clean Power Association (ACP) released its anticipated Clean Power Annual Market Report, revealing an unprecedented surge in the US clean energy landscape. 2023 marked a pivotal year, witnessing a historic expansion in clean energy capacity, surpassing all previous records.
With an astounding addition of 33.8 gigawatts (GW) of new utility-scale clean energy projects, the industry demonstrated remarkable growth, exceeding the previous annual installation record by an impressive 12.5%. Solar and storage projects spearheaded this surge, smashing previous records for both technologies. The dominance of clean power in the newly installed capacity signifies a monumental shift towards sustainable energy solutions in the United States.
Chart: U.S. Annual and Cumulative Utility-Scale Clean Power Capacity Growth – Clean Power Annual Market Report | 2023
According to the ACP, the US now has 262 GW of clean energy powering its grid, which is enough electricity to power the equivalent of 69 million American homes. As a result, the nation now generates 16% of its electricity from wind and solar. Clean energy can be found in 93% of congressional districts and in all 50 states. Future development looks promising, with the report finding project pipelines are reaching historic levels.
“Clean energy is fundamental to the American economy, accounting for more than 75% of all new power brought online last year. We are generating clean energy in every state and nearly every congressional district,” said ACP CEO Jason Grumet. “It has been a banner year for storage and solar, and there is real excitement over the 123 newly announced manufacturing facilities that will bring economic development to communities across the country. But despite these achievements, we need to make even greater strides to meet our shared energy security and net-zero goals. ACP will continue to advocate for improvements to siting, permitting, and planning processes to accelerate the deployment of clean energy.”
By technology
In 2023, utility-scale solar energy witnessed remarkable growth, propelled by supportive federal policies and declining costs. Across 44 states, close to 20 GW of solar capacity was installed, marking a significant milestone. Leading the charge were Texas and California, contributing 5.9 GW and 2.3 GW of new solar capacity, respectively. Notably, more than half of the total 94 GW of solar capacity operational by the end of 2023 was added between 2020 and 2023, reflecting the rapid pace of adoption. Looking ahead, the momentum continues, with over 92 GW of solar projects in the pipeline, signaling a promising future for clean energy expansion.
Battery storage experienced a remarkable surge in growth, nearly doubling its installed capacity to approximately 8 GW in 2023. This significant increase brings the total operating capacity to 17 GW. While California and Texas led the charge, contributing to nearly three-quarters of the year's storage additions, a total of fifteen states added new storage capacity. The rapid expansion of storage was propelled by various factors, including a new tax credit for standalone storage, the flourishing solar power industry, the value storage provides during peak demand and grid stress, and a decrease in prices for essential battery materials.
The land-based and offshore wind sectors faced challenges in 2023, delivering 6.4 GW of wind power capacity—the slowest year for new wind installations in a decade. This slowdown was attributed largely to policy uncertainty, high costs?of capital, long permitting processes, siting barriers, and a challenging environment for building new transmission.
Amazon, the leader
Corporate buyers are playing an important role in driving up clean energy demand by purchasing clean power for their operations, says the ACP. The top three commercial and industrial (C&I) buyers in 2023 were Amazon, Meta, and Google. Meta leads as the top buyer of operating clean power, while Amazon leads with the most total clean power capacity contracted.
According to the ACP, the clean power industry remains optimistic for the future, especially as developers started construction on 41 GW of new projects in the final months of 2023. This brings the clean power pipeline to a record 170 GW. Nonetheless, the record-setting pace of annual installations still lags behind what is needed for the country to achieve a net-zero emissions economy by 2050.?
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