Renewables, led by record levels of solar capacity additions, accounted for 24% of the power generation in the US. According to the handbook, even without tax credits, solar PV is one of the cheapest sources of new bulk generation in the country now, thanks to strong demand from utilities and corporates.The volume of corporate power purchase agreements (PPA) also set a record with a 66% YoY jump from 16.8 GW in 2023 to 28 GW in 2024. Solar was the preferred technology as corporates contracted 22.3 GW of PV capacity last year, followed by 4 GW of wind among other technologies. Technology companies led the corporate procurement drive last year, accounting for 84% of all the deals struck at 22.1 GW. Solar dominated the deals with 80% or 22.3 GW of all transactions related to this technology. The handbook lists Amazon as the largest offtaker with 5.95 GW capacity, split into 4.7 GW of solar and 1.25 GW of wind. Meta, Google and Microsoft, along with Amazon, were jointly responsible for 19 GW or 68% of the total corporate PPA activity.“Amid growing expectations of AI data center demand, and consequent electricity demand, these companies have been purchasing clean energy at record rates to both meet future demand and stay on top of their sustainability targets,” observe the analysts, who added that corporates are also investing in new nuclear projects as they seek clean firm capacity. Investment in clean energy generation capacity continues to climb the charts thanks to the focus on decarbonization. Out of more than $2 trillion spent globally, the US invested $338 billion, growing 0.8% YoY including renewable energy, electric vehicles (EV), and power grid investment. The levelized cost of electricity (LCOE) for most power-generating technologies rose in 2023, with costs associated with PV tracking projects seeing the largest increase (30%) from H2 2022. Despite the fall in module prices, the LCOE of fixed-axis solar went up by a benchmark 27% YoY to $63/MWh during H2 2023 due to higher interest rates and hardware costs.Analysts cite a slow permitting process for infrastructure projects as the key obstacle to energy deployment.“Moving forward, the United States can capitalize on this momentum through smart policy and regulatory reforms, such as maintaining federal energy tax credits, enacting permitting reform, and continuing investment in innovation through RDD&D initiatives. These policies will catalyze private sector dollars and unlock further American energy prosperity,” said BCSE President Lisa Jacobson. The complete handbook is available for free download on BCSE’s website.
