EIA: 29.1GW of PV installed capacity of public utilities in the United States in 2023

EIA: 29.1GW of PV installed capacity of public utilities in the United States in 2023

According to the research data released recently by the US Energy Information Administration (EIA), 29.1GW of utility scale photovoltaic systems and 9.4GW of energy storage systems will be added to the US photovoltaic market by 2023. If these projects are put into operation as planned, 2023 will be the year with the highest installed capacity of the new public utility scale photovoltaic system in the United States.

Encouraged by the requirements of the U.S. Inflation Reduction Act (IRA) and the nationwide renewable energy proposal, the U.S. Energy Information Administration (EIA) researchers predict that the U.S. renewable energy project developers will install up to 29.1GW of photovoltaic systems and up to 9.4GW of energy storage systems this year. This corresponds to 70% of the total installed capacity of 54.5 GW of new power generation facilities in the United States this year.

In the latest Annual Generator Monthly Update Report (EIA-860M) released by the US Energy Information Administration (EIA), due to the trade issues of the so-called "Prevention of Forced Labour Act" (UFLPA) in the United States, some utility-scale photovoltaic projects were postponed in 2022, and the US photovoltaic market is expected to rebound this year. The agency said that if all of these projects can be put into operation as planned, 2023 will be the year with the highest installed capacity of new utility scale photovoltaic systems in the United States, more than twice the 13.4GW in 2021.

Since 2010, the installed capacity of PV in the United States has grown rapidly. Despite the upward trend in the past decade, the PV installed capacity of public utilities in 2022 will decline by 23% compared with 2021. This decline is the result of UFLPA trade issues, broader supply chain disruptions and other challenges related to the COVID-19 epidemic.

Researchers from the United States Energy Information Administration (EIA) predict that by 2023, the installed photovoltaic systems in Texas (7.7GW) and California (4.2GW) will account for 41% of the installed capacity of new photovoltaic systems in the United States.

In the past few years, the energy storage market in the United States has developed rapidly. The market is currently eligible for 30% investment tax credit according to the guidance of the Inflation Reduction Act. According to the estimate of the U.S. Energy Information Administration (EIA), the installed capacity of the U.S. battery energy storage system may more than double by 2023. The developers of the energy storage system plan to install a 9.4GW battery energy storage system on the basis of the existing 8.8GW battery energy storage system.

With the development of the utility photovoltaic market and the wind power market, the U.S. battery energy storage market is growing rapidly. The battery energy storage system can store the excess power generated according to the intermittent mode of wind power generation facilities and photovoltaic systems for future use. The United States Energy Information Administration (EIA) estimates that 71% of the energy storage systems installed in the United States in 2023 will come from California and Texas, which are rich in solar and wind resources. Arizona Public Service Company and Florida Power and Lighting Company are the two largest off-takers of energy storage systems in the next year. The installed capacity of each battery energy storage project installed by them varies from 16MW to 50MW; AES and Hawaiian Electric Power Company purchased 30MW and 36MW battery energy storage systems respectively.