Renewable energy developers connected 1,099 MW of new wind power capacity to US electric grids in the second quarter, a 45% decline from the year-ago period, according to new S&P Global Market Intelligence data and analysis.
In the first two quarters of the year combined, developers installed 2,871 MW of new wind power capacity. Comparatively, in the first half of 2022, developers installed 4,784 MW of new wind power capacity.
Courtesy: S&P Gobal Market Intelligence
Wind power projects have faced the longest delays in 2023 of any renewable energy technology, with the average delay lasting 16 months, according to the American Clean Power Association. The industry’s main trade group attributed the delays to “component procurement challenges, trade frictions, higher costs, regulatory delays, and other challenges.”
The industry has a five-year project pipeline from 2023 to 2027 of 79,972 MW as developers look to take advantage of new tax credits enacted in the August 2022 Inflation Reduction Act.
Of that pipeline, 7,241 MW of capacity is under construction; 18,112 MW is in advanced development; 36,506 MW is in early development; and 18,113 MW of capacity has been announced.
Market Intelligence considers a project as under construction when building activity has begun; site preparation does not qualify. Projects in advanced development must meet two of five criteria: financing is in place, power purchase agreements are signed, equipment is secured, required permits are approved or a contractor has signed on to the project. A project is in early development after permitting begins. An announced project must have a listing in an interconnection queue with an accompanying public announcement or permitting action.
Developers in the quarter announced three new projects totaling 2,378 MW of capacity combined that will cost an estimated $8.7 billion to construct.
The largest among those is the proposed 1,200-MW NY Wind Gowanus Offshore Project, which Bay State Wind LLC plans to build off the shores of New York. The second-largest announced project was the proposed 880-MW Atlantic Shores Offshore Wind 8 owned by Electricité de France SA subsidiary EDF Renewables Inc. and Shell PLC subsidiary Shell New Energies US LLC.
UK-based Renewable Energy Systems Holdings Ltd. subsidiary Renewable Energy Systems Americas Inc. announced the third project of the quarter, the proposed 298-MW North Country Wind farm in Franklin County, NY.
