Voluntary procurement of utility photo voltaic stays the highest driver of U.S. utility PV in improvement, in response to Wooden Mackenzie.
WoodMac defines voluntary procurement as procurement primarily based solely on the financial competitiveness in opposition to different vitality sources of electrical energy technology.
Procurement of utility photo voltaic by company offtakers presently ranks second total. Nonetheless, the share of RPS-driven photo voltaic, which is procured to assist utilities meet zero carbon or renewable vitality mandates, has additionally grown and represented 28 p.c of PPA contracts signed in the primary half of 2020.
Whereas there’s substantive danger of COVID-19 affecting the price of capital for brand spanking new utility photo voltaic tasks, utility PV is prone to stay probably the most economically aggressive electrical energy supply within the U.S.
Because of this, and regardless of the stepdown of the federal funding tax credit score, voluntary procurement will stay the utility-scale photo voltaic business’s largest driver. In different phrases, Wooden Mackenzie nonetheless anticipate utilities to proceed signing new utility photo voltaic PPAs.
Regardless of COVID-19 inflicting financial uncertainty, the pre-contract pipelines presently sits at 258.2 GWdc, with 34 gigawatts of tasks having a signed interconnection settlement.
Wooden Mackenzie notes that Q1 noticed 5 gigawatts of recent tasks procured within the U.S., a slowdown from 2019 procurement however nonetheless one of many greatest quarters for procurement on report.
Q1 2020 was the strongest Q1 on report for most megawatts of recent utility PV capability put in within the U.S. A complete of two.three GW got here on-line the first quarter of this yr, representing 16 p.c of Wooden Mackenzie’s 2020 U.S. utility PV forecast.
Whereas there have been a couple of reported circumstances of tasks being delayed due components associated to the coronavirus, builders have, by and huge, reported delays usually are not important. The virus may, nevertheless, pose a danger to future tasks which have but to be contracted.