Renewable Energy Development Challenges | Renewables Watch Blog
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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ESAI Power evaluates the renewable energy issues, markets and trends in the PJM, New York, and New England market footprints. Coverage includes solar, onshore and offshore wind, hydroelectric, and storage. For each region, ESAI Power details the regulatory and market factors that impact the supply and demand balance for Class I Renewable Energy Credits (RECs) and projects the supply and demand balance of Class I RECs through 2030.
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Offshore wind is driving renewable energy growth in the PJM, NYISO & ISO-NE. ESAI has examined the interconnection queue data in each of the three Northeast power pools to identify trends in the generation capacity development by fuel type. Highlights of this white paper include:
- Conventional generation development has dwindled.
- Renewable energy aims for state-mandated targets.
- Solar is surging across the area.
- Onshore wind is declining significantly.
- Offshore wind takes center stage, especially in NY & NE.
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