Renewable Energy Development Challenges | Renewables Watch Blog

Published July 19, 2022 | Blog | Renewables-Watch

In our recent Renewables Watch report, we provide a high-level review of some current challenges faced by developers of renewable energy projects, and reviews ESAI Power’s observed delays to project online dates between Q1 and Q2 2022.

Specifically, supply chain constraints, interconnection challenges, and regulatory uncertainty have posed several challenges to project developers, including delays to planned in-service dates and increases in expected development costs. Delays to project online dates are bullish for REC prices as the expected supply of available RECs is reduced. 1 While some project developers have explicitly cited specific reasons for project delays, most have not.

However, for those that have pointed to specific factors, the most commonly cited challenges include:

  • Insufficient Supply of Domestic Solar Panels and Uncertainty Pertaining to Continued Availability of Low Cost Imports. 
  • Interconnection and Permitting Delays – our analysis assess the project delays in PJM, NYISO, and ISO-New England.
  • Uncertainty Pertaining to Tax Credits – federal production tax credits have been a boon to investments over the past decade, however most are winding down.

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