The evolution of the solar industry in the US since 2021
Jun 18, 2024
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Vanessa Witte and Kelly Sarber discuss key takeaways from the 2024 Solar and Energy Storage Summit, including the impact of supportive government policies and new tariffs. They explore supply chain issues, bottlenecks in projects, and the high cost of capital environment causing delays. The podcast also delves into geopolitical risks, tariffs on domestic solar manufacturing, and the importance of resiliency in the energy sector.
Supportive government policies remain crucial for the success of the solar industry in the US.
Strategic alliances and optimization efforts are key strategies to navigate challenges in project development.
Emerging markets are significantly influenced by policy shifts in the solar and energy storage sector.
Deep dives
Storage Policy Changes and Market Sophistication
Recent policy changes in the storage sector have generated significant discussion, including domestic content guidance, new solar and storage tariffs, and FERC reform measures on transmission. Players in the market are focusing on optimization, siting, and asset management to increase revenue returns. Emerging markets are playing a vital role influenced by policy shifts.
Development Discipline and Strategic Alliances
Increasing discipline in development is observed due to rising costs and project complexities. Strategic alliances are forming within the ecosystem, especially among EPCs, to overcome challenges like project delays and lead time issues. Focus on location selection and operational efficiency is crucial.
Evolution of Energy Summit Topics Over the Years
The podcast discusses the evolution of key issues in energy development over the years, highlighting shifts from supply chain concerns to inflationary pressures and now to early stage development challenges. Persistent issues like interconnection, transmission, and local opposition require long-term policy solutions.
Supply Chain Lessons and Market Participation Trends
Supply chain disruptions during COVID led to project delays and contract repricing, emphasizing the importance of cost structure discipline. Market participation trends vary, with some players focusing on merchant markets and risk management, while others prefer traditional renewable energy PPA models.
Innovations in Brownfield Development and Financing
Utilizing brownfield sites for energy projects is gaining traction, offering a win-win scenario for repurposing industrial sites and gaining incentives. Creative financing strategies, like bridge financing for tax credits and construction finance aggregation, are emerging to facilitate project deployment and accelerate decarbonization efforts.
The 2024 Solar and Energy Storage Summit has wrapped. What are the key takeaways?
In the past three years there’s been a lot of advancement in solar deployment. We’ve seen technology develop and policy support increase. The key talking points have changed similarly in the last three years of the event, but a common thread has been consistent: the importance of supportive government policy.
We are joined by Vanessa Witte, Senior Research Analyst at Wood Mackenzie, and Kelly Sarber, CEO of Strategic Management Group to recap the summit and explore the impact of the most important climate legislation in living memory: the IRA. New tariffs on solar and storage are part of it – what’s the impact been? What are the policy effects on emerging markets?
Plus, supply chain issues in 2022 were a major talking point. Have these been resolved? On previous episodes of the show the issue of bottlenecks to new projects was raised as a big concern – Vanessa gives her perspective on this. It’s a high cost of capital environment and it’s causing delays. What can be done?
Finally, Kelly explores the geopolitical risks, and the impacts of tariffs and policies aimed at strengthening domestic solar manufacturing.
Registration for the 2025 Solar and Energy Storage summit will be open soon. Keep an eye on woodmac.com/events to secure your ticket.
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For more information from our sponsor Convergent Energy and Power on their industry-leading battery storage and solar solutions, please go to convergentep.com