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Released December 05, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking more than $51.9 billion in medium- and high-probability renewable power projects that are planned to kick off in the U.S. in 2020. Medium-probability projects are rated as having a 70%-80% to moving forward as planned, while high-probability projects are rated as having an 81%-99% chance.
Wind and solar are neck-and-neck in regard to the value of planned project starts in 2020; however, wind with $24.99 billion in planned activity slightly edges out solar's $24.8 billion in projects. When low-probability projects (0%-69% of moving forward) are included in the mix, wind definitely has the lead at $55.32 billion, versus solar's $42.28 billion. Included in the low-probability numbers is a large, $3.1 billion offshore windfarm, a type of project which has not been successfully implemented in U.S. waters.
Click on the image at right for a breakdown of planned medium- and high-probability U.S. renewable energy project starts in 2020.
As U.S. utilities seek to lower their fossil fuel footprint, many are implementing renewable energy projects. In addition, lucrative federal tax credits have encouraged development of both wind and solar power. However, the wind Production Tax Credit, which has been stepping down gradually from year to year, expires for good at the end of 2019. The solar Investment Tax Credit, while stepping down in coming years, is designed to remain in place in perpetuity, although at a lower rate than currently. The dissolving tax credits don't seem to be putting a stop to renewables development. In its Annual Energy Outlook 2019, the U.S. Energy Information Administration (EIA) expects wind and solar to almost double their current market share by 2025, increasing from 8% at the start of this year to 14% by 2025. The agency's next annual energy outlook is scheduled for release next month and may show a rise in this previously forecasted growth.
Two of the biggest wind and solar projects are set to begin construction in Texas next year. Renewable Energy Systems Limited's (Broomfield, Colorado) 450-megawatt (MW) Maverick Creek Windfarm is set to begin construction next year in Concho County. The facility will be built on a 50,000-acre site and is planned to accommodate 116 wind turbines with a generating capacity of approximately 3.9 MW each. Cummings Westlake (Cypress, Texas) is the consultant on the project, which is expected to be completed in early 2022. For more information, see Industrial Info's project report.
In Andrews County in West Texas, Orsted A/S (Fredericia, Denmark) is preparing to begin construction of its Permian PV Energy Center next summer. The 420-MW solar array will include 1.3 million solar panels. Construction on the $550 million project is expected to last about a year. For more information, see Industrial Info's project report.
Other states with high renewable project activity planned to kick off next year include California. Among the state's most ambitious projects is Intersect Power's (San Francisco, California) Athos I and Athos II solar facilities, both of which are planned to kick off construction in 2020. The facilities will be located in Desert Center, about 170 miles east of Los Angeles. Athos I will generate 350 MW and is expected to start construction in the summer. Construction on the 300-MW Athos II is expected to kick off a few months later. Signal Energy Constructors (Chattanooga, Tennessee) is providing engineering, procurement and construction (EPC) services. The projects have a combined total investment value of more than $1.1 billion. For more information, see Industrial Info's project reports on Athos I and Athos II.
While solar and wind dominate next year's planned project activity, hydropower ranks a distant third, thanks in large part to a pumped-storage hydropower project, a type of project that is most often ranked as low-probability by Industrial Info. However, the Gordon Butte hydropower project near Martinsdale, Montana, is moving right along. This summer, the parent company, Absaroka Energy LLC (Bozeman, Montana), lined up financing for the $1 billion project though an equity investment from Denmark's Copenhagen Infrastructure Partners. The project has received construction and operational permits from the U.S. Federal Energy Regulatory Commission, and developers recently confirmed that the project could kick off next year. The facility would generate 400 MW through a closed-loop system that pumps water to a higher elevation in times of low power demand, releasing it to run through three 133-MW turbines when needed. Ames Construction Incorporated (West Valley City, Utah) is providing EPC on the project, which is expected to be completed in 2024. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Wind and solar are neck-and-neck in regard to the value of planned project starts in 2020; however, wind with $24.99 billion in planned activity slightly edges out solar's $24.8 billion in projects. When low-probability projects (0%-69% of moving forward) are included in the mix, wind definitely has the lead at $55.32 billion, versus solar's $42.28 billion. Included in the low-probability numbers is a large, $3.1 billion offshore windfarm, a type of project which has not been successfully implemented in U.S. waters.
Click on the image at right for a breakdown of planned medium- and high-probability U.S. renewable energy project starts in 2020.As U.S. utilities seek to lower their fossil fuel footprint, many are implementing renewable energy projects. In addition, lucrative federal tax credits have encouraged development of both wind and solar power. However, the wind Production Tax Credit, which has been stepping down gradually from year to year, expires for good at the end of 2019. The solar Investment Tax Credit, while stepping down in coming years, is designed to remain in place in perpetuity, although at a lower rate than currently. The dissolving tax credits don't seem to be putting a stop to renewables development. In its Annual Energy Outlook 2019, the U.S. Energy Information Administration (EIA) expects wind and solar to almost double their current market share by 2025, increasing from 8% at the start of this year to 14% by 2025. The agency's next annual energy outlook is scheduled for release next month and may show a rise in this previously forecasted growth.
Two of the biggest wind and solar projects are set to begin construction in Texas next year. Renewable Energy Systems Limited's (Broomfield, Colorado) 450-megawatt (MW) Maverick Creek Windfarm is set to begin construction next year in Concho County. The facility will be built on a 50,000-acre site and is planned to accommodate 116 wind turbines with a generating capacity of approximately 3.9 MW each. Cummings Westlake (Cypress, Texas) is the consultant on the project, which is expected to be completed in early 2022. For more information, see Industrial Info's project report.
In Andrews County in West Texas, Orsted A/S (Fredericia, Denmark) is preparing to begin construction of its Permian PV Energy Center next summer. The 420-MW solar array will include 1.3 million solar panels. Construction on the $550 million project is expected to last about a year. For more information, see Industrial Info's project report.
Other states with high renewable project activity planned to kick off next year include California. Among the state's most ambitious projects is Intersect Power's (San Francisco, California) Athos I and Athos II solar facilities, both of which are planned to kick off construction in 2020. The facilities will be located in Desert Center, about 170 miles east of Los Angeles. Athos I will generate 350 MW and is expected to start construction in the summer. Construction on the 300-MW Athos II is expected to kick off a few months later. Signal Energy Constructors (Chattanooga, Tennessee) is providing engineering, procurement and construction (EPC) services. The projects have a combined total investment value of more than $1.1 billion. For more information, see Industrial Info's project reports on Athos I and Athos II.
While solar and wind dominate next year's planned project activity, hydropower ranks a distant third, thanks in large part to a pumped-storage hydropower project, a type of project that is most often ranked as low-probability by Industrial Info. However, the Gordon Butte hydropower project near Martinsdale, Montana, is moving right along. This summer, the parent company, Absaroka Energy LLC (Bozeman, Montana), lined up financing for the $1 billion project though an equity investment from Denmark's Copenhagen Infrastructure Partners. The project has received construction and operational permits from the U.S. Federal Energy Regulatory Commission, and developers recently confirmed that the project could kick off next year. The facility would generate 400 MW through a closed-loop system that pumps water to a higher elevation in times of low power demand, releasing it to run through three 133-MW turbines when needed. Ames Construction Incorporated (West Valley City, Utah) is providing EPC on the project, which is expected to be completed in 2024. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
