EIA: 60% of Planned U.S. Generation to Come from Solar, Battery Storage

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Researched by Industrial Info Resources (Sugar Land, Texas)--According to the U.S. Energy Information Administration (EIA), 85 gigawatts (GW) of power generation is expected to be added in the U.S. in 2022 and 2023. Of this, 60% (51 GW) is planned to come from solar generation or battery energy storage systems (BESS).

Solar facilities and BESS go hand in hand, and much of the upcoming solar and battery additions will exist in conjunction with each other. According to the EIA, solar generation accounts for about 41 GW of the new generation planned for the next two years, while BESS represents 10 GW. More than 60% of the battery storage built will be paired with solar facilities.

More than half of the 51 GW of solar and BESS additions will occur in three states: Texas (12 GW), California (11 GW) and New York (4 GW).

In Texas, one of the leading developers of solar power planned for completion in the next two years is Hecate Energy LLC (Chicago, Illinois), which has proposed more than $2.8 billion in 2022-23 solar completions in the state. Examples of Hecate projects include the Roseland photovoltaic facility near Mart, about 20 miles east of Waco. The plant will use about 669,000 solar panels on a single-axis tracking system to generate 500 MW. The project is expected to wrap up this summer. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for the detailed report. The Roseland facility also will include a 50-MW BESS unit, also planned for completion this summer. Subscribers can click here for the report.

California is very focused on installing BESS, often at large-scale facilities of a few hundred megawatts. CD Arevon USA Incorporated (Scottsdale, Arizona) plans to start construction of the 200-MW Avocet BESS this summer near a substation in Torrance, California, in the Greater Los Angeles area. The facility will use Tesla Incorporated's (NASDAQ:TSLA) (Austin, Texas) Megapack lithium-ion battery technology. Subscribers can click here for the detailed report.

Among the largest solar projects in California planned for completion next year is Terra-Gen LLC's (New York, New York) 700-MW facility at Edwards Air Force Base, which will use approximately 14.4 million solar panels on a single-axis tracking system. Construction kicked off early last year and is expected to be completed in the early part of 2023. Subscribers can click here for the report.

While New York lags behind Texas and California in total capacity of solar and BESS projects planned for completion in upcoming years, several such projects are in the works. Compared to Texas and California, these facilities often are smaller, rarely reaching above 150 MW in generating capacity. Leading solar and BESS developers in the state include NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida), Invenergy (Chicago, Illinois) and ConnectGen LLC (Houston, Texas).

In New York, Invenergy is gearing up to later this year begin construction on a photovoltaic facility with accompanying BESS. The Bull Run facility near Mooers will include 170 MW of solar generation and 20 MW of battery storage. The projects are expected to be completed in the fourth quarter of next year. Subscribers can click here for the project reports.

According to the EIA, developers expect to add 22 GW of solar capacity this year, compared with 13 GW added in 2021. Investments in this area are expected to stay strong; in 2020, the 26% Solar Investment Tax Credit (ITC) was extended into 2021 and 2022 and will step down to 22% in 2023. The EIA also noted that falling battery costs were making BESS units an increasingly attractive option for solar developers seeking to partially remedy the intermittent generation of solar facilities while developing emissions-free generation.

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