subject: Renewable Energy In The Us: Policy, Investment, Capacity, Growth And Outlook At Reportsandreports [print this page] Dallas, TX: ReportsandReports announce Renewable Energy in the US: Policy, Investment, Capacity, Growth and Outlook Market Research Report in its Store.
Following more than a year of global financial crisis and economic downturn, the growth and expansion of the US renewable power industry is testament to the inherent attractiveness and resilience of the sector. Renewables will continue to be the bright spot of the US economy in 2010, given that the drivers that propelled the sector for the past five years are still at work.
Scope
Data and analysis of installed capacities and generation across all sources of renewable energies in the US, at a national level and by state.
A detailed identification of the key drivers and barriers shaping these markets, and the likely growth potential of each renewable technology.
A detailed examination of new technology introductions and innovations, and future areas of opportunity for manufacturers and power providers.
Up to date competitive intelligence on key players operating across all renewable energy technologies, nascent and established, across the US.
Highlights
The economic and financial crisis should have dealt a devastating blow to the renewables industry. Private investment in 2009 declined dramatically but was buttressed by record levels of public funds. These must now play a catalytic role in supporting capital market solutions to permanently secure the financing options needed by the industry.
The market is almost nearly entirely supported by public policy. The vast and growing number and types of government, utility and non-profit financial incentives for renewable energy and energy efficiency in the US help explain growth levels in these markets. Production tax credits and renewable portfolio standards are key market drivers.
Not all renewable energy technologies are equal or offer the same growth prospects in the US. Solar is likely to live in the shadow of wind energy for several years to come, while hydropower, biomass and geothermal make modest inroads into the wider US energy market. The outlook for nascent wave and tidal energy markets will gradually improve.
Reasons to Purchase
Determine how different elements of US legislation and market trends are influencing the development of all renewable energy markets.
Assess how the renewable energy capacity mix will evolve, what the key opportunities will be and which states offer the greatest potential and why.
Understand how renewable energy asset strategies are likely to evolve and how and where your company should interact with renewables in the US.
Table Of contents
Overview 1
Catalyst 1
Executive summary 1
Methodology 1
Sources 1
Table of Contents 4
Table of figures 5
US power market and related political developments 6
Power landscape 6
Weak economic activity and reduced demand for cooling led to a 0.9% decrease in power demand in 2008 versus a 2.3% increase in 2007 6
Power generation in the US is currently dominated by coal-burn, even though the installed capacity of gas generation is greater than coal 7
2008 US power generation snapshot: conventional generation is dominated by coal, natural gas and nuclear power generation 8
Renewable power overview 9
Renewable energy generation output since 1996 is characterized by a decline in hydro output, offset by sustained increases in wind 9
2008 US power generation snapshot: growth of renewable power generation is driven mainly by wind power 10
Growth in wind power generation has outpaced that of all other forms of generation, albeit from a very low initial installed base 11
Gas installed capacity in the US is greater than coal, yet coal power generation is much larger than gas power generation 11
Utility power plants account for the majority of electric installed capacity in the US 13
Power generation in 2008: 13
Net capacity additions of wind power in the US are outstripping net additions of gas capacity 14
Coal, petroleum and nuclear installed capacities have declined since 1997; renewables, gas, and other sources make up the total net addition 15
The US is a global leader in wind, biomass and geothermal power installed capacity and ranks first for new capacity investments 16
Despite the economic downturn in 2008, the average retail price for all US customers increased in 47 out of the 50 states 18
Despite decreases in retail power volumes in 2008, revenues actually increased, driven by higher power prices 19
Fossil fuel prices showed significant volatility during 2008, which contributed to an increase in average retail electricity prices 20
Estimated US power plant emissions were down in 2008, due to decreased fuel consumption 21
Drivers of renewable power 22
Growth in renewable energy generation in the US is spurred on by a range of federal, state-based and local incentives 22
American Recovery and Reinvestment Act 22
Renewable energy and energy efficiency investments in the US are underpinned by a wide range of sub-national financial incentives 23
Renewable energy and energy efficiency investments in the US are underpinned by a wide range of state climate regulations 24
The production tax credit is often considered as the main driver of renewable power generation growth in the US over the past decade 25
Renewable portfolio standards have been most successful at stimulating new renewables when deployed alongside the PTC 26
Public support for action on climate change is variable but an overall upwards trend has emerged over the last decade 28
Resilient venture capital levels are a strong growth driver for the wider cleantech industry 28
The US American Power Act presents significant incentives for companies operating across the renewable energy value chain 30
In stark contrast to the previous administration, the new Democrat administration has placed green at the heart of its political agenda 31
The US has embarked on a program to develop renewable energy projects in the waters of the Outer Continental Shelf 32
Resistors of renewable power 33
Forces driving the current growth of the US renewables industry are being met by sizable opposing forces 33
Failure to price CO2 emissions 33
Licensing and environmental issues also present significant barriers to the uptake of renewable energy technologies 34
Licensing and permitting issues 34
Environmental issues 34
Renewable generation in the US has thus far been punctuated by 'stop-start' investment under the PTC 34
Investment in US renewables remain contingent on federal PTC policy continuity 36
Ensuring renewable energy access to existing and new transmission infrastructure is another imperative in the US 36
Ensuring renewable energy access to existing and new transmission infrastructure is another imperative in the US 37
The 2009 economic and financial crisis should have dealt a devastating blow to the US renewables industry 39
Despite the economic and financial crisis, renewable investment dipped only slightly, supported by massive public spending 39
US wind power market 41
Current scenario 41
The US wind energy market installed nearly 10GW in 2009, maintaining its global leadership in installed capacity 41
Global wind power has been very resilient in the face of the global recession and financial crisis, but the future is less certain 42
Wind farm projects, both new build and M&A, are front-loaded and capital intensive 43
Project lifetimes, coupled with discount rates, have a significant influence over the annual costs of wind power generation 44
The cost of capital, reflected in the discount or interest rate, has a high degree of influence on wind turbine development costs 45
The 2009 economic and financial crisis presented a significant challenge for the US wind industry 46
The US wind industry boom continued during 2009 despite the economic and financial crisis, supported by vast public spending 47
The world's wind industry defied the economic downturn and saw its power capacity increase by close to one third in 2009 48
Texas, once known as an oil and gas-producing state, has become the nation's top producer of wind energy 49
GE Energy is the largest turbine supplier, NextEra the largest overall wind owner and Xcel Energy the largest utility wind owner 50
Drivers of the wind power market 51
The factors that drive the development of the US renewables energy industry also drive the uptake of wind power energy 51
Over the last 20 years, the cost of wind turbines has fallen dramatically while their efficiency has improved significantly 53
From a meteorological perspective, US wind power potential is tremendous and is greatest in the Great Plains region 54
Resistors of the wind power market 56
Forces driving the current growth of wind power in the US are being met by significant opposing forces 56
Failure to price CO2 emissions 56
Environmental issues and policy limitations also act as a barrier for the growing wind power industry in the US 57
Environmental issues 57
Policy limitations 57
Transmission constraints-planning, paying and permitting-form one of the most sizable barriers facing the US wind industry 57
Outlook for the wind power market 58
The outlook for wind energy in the US is cautiously optimistic despite possible manufacturing and project bottlenecks 58
Wind energy will continue to be a bright spot of the US economy in 2010 but public finance must power private capital investment 59
US solar power market 60
Current scenario 60
The solar industry relies on two different forms of technology to convert sunlight into electricity 60
Long derided as uneconomic, the nascent solar PV market is gaining significant ground thanks to its strong green credentials 61
Following phenomenal growth in 2008, 2009 was a year of more modest growth for the global solar PV power market 62
The US solar industry maintained its impressive growth rate in 2009 despite slowdown in the housing and construction sectors 63
In 2009, California retained its leading position as the US state with the highest level of installed solar PV capacity 64
Throughout the years US solar energy consumption was almost exclusively used for residential energy purposes 65
The number of US firms involved in the solar energy supply chain has steadily risen and is projected to grow further 66
Although solar export markets are growing, the US home solar sector is losing market share to manufacturers from abroad 67
US utilities are beginning to expand their asset base in the solar energy market 67
In the US, First Solar is the top PV manufacturer and crystalline silicon is the most widespread form of PV technology 69
PV deployment will not be limited by suitable land area availability; CSP, however, has the most opportunity in the Southwest 70
The PV market is divided into four market sectors on the demand side 71
Solar manufacturers, rather than established energy companies, are exploiting opportunities presented by the fast-expanding market 72
With new companies and fresh markets wrestling for prominence, strong industry consolidation and vertical integration are expected 73
For utilities, the horizontal integration of fixed-cost solar assets presents an unhedged yet comparatively safe business model 74
Utilities could quickly become the largest and one of the most important customers for the solar industry 75
Solar will increasingly form part of utilities' horizontally integrated renewable operations, with upstream benefits but barriers downstream 76
Drivers of the solar power market 76
Much like other renewable energy sectors, the US solar energy sector is supported by federal legislation 76
State level grants and incentives are the primary driver for continued growth of the solar energy market in the US 77
Other economic and financial benefits also attract growing numbers of private investors 77
Resistors of the solar power market 78
Several economic barriers may hamper further solar energy growth 78
Solar power is still comparatively expensive and, for the moment, remains more expensive than most competing technologies 79
For solar power generation, true grid parity depends upon the evolution of solar power costs, carbon costs and power prices 80
Outlook for the solar power market 81
Having developed at a rapid pace, solar now faces key challenges, many of which will be offset by even larger opportunities 81
Growth of the US solar market is on the cusp of step change 82
US hydro power market 84
Current scenario 84
Hydropower is a clean and renewable energy source, but it is not without problems 84
Hydropower capacity in the US remained constant between 2000 and 2008 85
Total installed hydro power capacity in the US is second only to China, but Canada and Brazil are quickly catching up 86
US West Coast states lead in terms of installed conventional hydroelectric capacity 87
Renewable energies in the US are growing but conventional hydro capacity has remained flat 88
Renewable energies and natural gas are racing to fill the generation gap as coal recedes, but hydropower remains flat 89
Total net power generation in the US in January 2010 was slightly higher than in January 2009 90
Monthly net generation from hydro power fell significantly on the West Coast in January 2010 91
Despite having the world's second largest hydropower asset base, the US only ranks fourth in terms of hydroelectric consumption, trailing China, Canada and Brazil 92
Utilities, independent power producers and industrial self-generators are the three key hydropower generators in the US 93
Drivers of the hydro power market 94
Existing hydropower has low operating costs and new hydropower is among the least expensive forms of low-carbon electricity 94
Legislation as well as licensing and financing rules are changing the hydropower landscape in the US 95
Energy Policy Act of 2005 95
The American Recovery and Reinvestment Act 2009 96
Resistors of the hydro power market 97
The obstacles to the further development and deployment of hydropower are significant 97
Outlook for the hydro power market 98
The nature of global hydropower is changing 98
Growth opportunities for the US hydropower industry are the best they have been for the past three decades 98
US geothermal power market 100
Current scenario 100
Geothermal energy is a clean, renewable and limitless source of energy supply 100
Four types of geothermal power plants are currently in operation for commercial use 102
A variety of technologies have emerged to adapt geothermal energy plants to specific geological conditions 103
Following eight years of stagnation, installed geothermal capacity in the US has recently risen 104
Electricity net generation from geothermal energy has remained stable in relation to other renewable energies 105
The geothermal energy sector is dominated by independent power producers that have specialist knowledge and skills 106
The US holds a world leading position in geothermal energy capacity 107
Geothermal heat is used in many different non-power generating applications across the US 108
Drivers of the geothermal power market 109
Geothermal capital costs can be among the lowest of all forms of renewable power generation 109
State renewable standards coupled to federal stimulus and tax incentives will stimulate growth in the geothermal power industry 110
Resistors of the geothermal power market 111
Barriers to the expansion of the geothermal industry can be of a financial, geological or environmental nature 111
Outlook for the geothermal power market 112
Geothermal power opportunities may exist in regions and applications thus far largely underexploited by the industry 112
Geothermal resources have the potential to play a much more significant role in the US' energy mix 114
Environmental benefits and technological progress could pave the way for increasing geothermal energy production 114
US biomass power market 116
Current scenario 116
Biomass power generation is derived from a variety of organic fuels 116
In the US, waste-to-energy combustion and landfill gas are by-products of the municipal solid waste industry 117
Biomass power generation systems include direct and co-firing plants as well as gasification and pyrolysis processes 117
Biomass power generation often capitalizes on the anaerobic digestion of waste and the modularization of systems 118
Bioenergy accounts for roughly 9.5% of the total renewable capacity and around 1.1% of the overall capacity in the US 119
Biomass is a major source of energy in emerging economies, but biogas is predominantly used in developed countries 121
California, Florida, Maine and Virginia lead the way in terms of installed biomass power capacity in the US 122
Co-firing of biomass and coal is used across the US although the highest potential lies on the east coast 123
US net power generation from biomass energy has remained relatively stable over recent years 124
Drivers of the biomass power market 126
Vast and varied biomass resources exist across the US 126
Resistors of the biomass power market 127
Supply chain technologies and comparative economics act as the main barriers to greater biomass utilization 127
