Wood Mackenzie, also often called WoodMac, is a worldwide research and consultancy group. In 2015, the corporate was acquired by Verisk Analytics, an American data analytics and risk assessment firm.
Massachusetts — Boosted by recent laws, the U.S. recorded 10 gigawatts (GW) of latest utility-scale solar capability contracts in Q2, up 201% from Q1, for the most important quarter-over-quarter growth on record, in accordance with a latest evaluation from Wood Mackenzie, a Verisk business.
This activity accounted for the most important quarterly contracted capability since 2019 and brought the contracted pipeline to 88 GW, an all-time high.
“We’re seeing lots of optimism at once in renewables with the passage of the Inflation Reduction Act,” said Sylvia Leyva Martinez, senior research analyst with Wood Mackenzie. “The utility-scale solar segment is seeing an actual boost of interest and investment. There are still some short-term challenges for installations, as we proceed to grapple with supply chain challenges, but the longer term looks very brilliant.”
While contracts remain high, the results of the IRA bill will likely not fully kick in until 2025, when project timetables catch up and provide chain issues have ceased. Wood Mackenzie is projecting that the U.S. utility-scale PV market will add 437 GW between 2022 and 2032.
The U.S. registered 2.7 GW of utility-scale solar installations in Q2, up 24% from the previous quarter. Greater than half of the activity (53%) was driven by Texas. The Southeast was also lively, with Florida and Georgia recording strong gains as well at 12% and 11%, respectively.
Despite the rise, the aforementioned supply chain constraints proceed to hamper the industry. This quarter was the bottom Q2 for installations since 2019 and the fifth lowest quarter in that timeframe.
“We’re seeing diversification within the pipeline, with Recent York and Florida each with greater than 5 GW of projects in development,” said Matthew Sahd, research associate at Wood Mackenzie.
Sahd concluded: “Utilities proceed to be the strongest driver, but their share of the pipeline continues to diminish. The rise of corporate-driven procurement has made up for this – which should proceed to drive more activity in the longer term.”