Utility-Scale Solar Power Projects Continue to Grow in North America

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Researched by Industrial Info Resources (Sugar Land, Texas)--Utility-scale solar power projects being developed in North America continue to increase as construction costs decline. Utility-scale solar power has doubled each year since 2012, with more than 27 gigawatts (GW) of solar now either under construction or in development.

In North America, Industrial Info is tracking 71 utility-scale solar projects, which are defined as being able to generate more than 50 megawatts (MW), valued at more than $27.72 billion. California is home to 28 such projects woth $14.8 billion, followed by Nevada, with 11 projects worth $5.16 billion; Arizona, with four projects valued at $2.76 billion; and five projects in Texas worth $813 million.

Whether solar photovoltaic (PV) or concentrated solar power/thermal (CSP), these projects continue to advance, largely as a result of federal investment tax credits (ITC), which are due to expire by the end of 2016. After that date, the industry will continue to grow, but at a slower rate for about 12 to 24 months. Congress may provide some sort of interim incentive; but in any case, the solar industry will move forward, albeit with some consolidation.

Though the price of utility-scale solar has decreased considerably in the past six years, developers predict solar PV tracking to be $1 to $1.50 per watt by 2017 or 2018, if the cost of inverters, racking systems and installation continues to decline. Solar modules represent 45% of total costs, with balance-of-plant systems encompassing the remaining 55%.

California and southwestern states will account for about 60% of capacity additions through 2016. Utility-scale solar power recently reached cost parity with natural gas, depending upon the power-purchase agreement and region of the country.

The U.S. Energy Information Administration (EIA) (Washington, D.C.) recently reported that utility-scale solar power generation is 31 times higher than it was a decade ago.

CSP projects are not being developed as quickly as utility-scale PV solar projects, and the CSP technology is being challenged by low-cost natural gas-fired power projects and a difficult regulatory environment. CSP developers have turned to international markets, research and development, and the addition of energy-storage components, such as batteries or thermal. This advance could improve the technology.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.