A new report released by S&P Global Market Intelligence states that the US will continue to install record levels of solar and wind capacity in 2022 as the energy transition intensifies.
In addition to supporting policies, the report states that these records will be the result of utilities and energy stakeholders finding new ways to finance renewables deployments and to optimize infrastructure management.
Key study findings include:
Up to 44 GW of solar, 27 GW of wind and 8 GW of battery storage capacity will be deployed in 2022.
The creation of dedicated programmes including virtual power purchase agreements and green tariffs will support clean capacity deployments.
Early plant retirement costs due to the energy transition will present challenges for utilities and state regulators with 29 GW of coal retirements planned for 2020 through 2025.
US utility capex is expected to remain on the upswing, with investments in upgrading and modernizing the country’s aging energy and water infrastructure reaching $63 billion and utility renewables spending surpassing $14 billion in 2022.
The averages of the state-authorized electric, gas and water utility ROEs fell to their lowest levels on record in 2020 and are likely to remain near that level for 2021 and 2022, despite potential rising interest rates and the spectre of inflation.
Water and wastewater utility M&A has increased in 2021, and is expected to accelerate in 2022, as investor-owned companies target municipal system acquisition targets
Richard Sansom, Head of Commodities Research at S&P Global Market Intelligence, said: “As the momentum of the energy transition continues to build, this report looks at how regulators and utilities are adapting to state and federal carbon reduction policies and dealing with the costs of the assets that get left behind.”Sign up for our newsletter and stay informed
Find out more about the report.