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A RECORD QUARTER FOR SOLAR: The nation’s leading solar lobby is celebrating a record first quarter of new installations this morning after underperforming hopes for growth last year.
The numbers: The Solar Energy Industries Association published its first quarter performance report this morning, showing the solar market installed 6.1 gigawatts of new capacity during the first three months of the year, up 47% from Q1 2022. Florida accounted for more than a quarter of new additions.
Solar outperformed other renewable and traditional resource additions, accounting for 54% of all new electricity-generating capacity added to the grid during the quarter.
The storylines: Solar project construction slowed considerably last year, and the industry’s growth rate fell relative to 2021, which was blamed largely on supply chain issues, consequences to importers of the Commerce Department’s anticircumvention investigation (especially felt during the first half of the year), and disruption of module imports due to enforcement of the Uyghur Forced Labor Prevention Act.
Module imports containing Chinese polysilicon are still being held up, but Customs and Border Protection guidance has helped compliance with documentation requirements, allowing imports containing polysilicon from other sources to move through more quickly, according to SEIA’s new report, which it co-authored with Wood Mackenzie.
“What we started to see at the tail end of last year and into Q1 is the supply chain improving, particularly on the module side,” Shawn Rumery, senior director of research for SEIA, told Jeremy. “That has allowed more product to get on site and this pretty long pipeline of utility-scale projects to move forward and be built out and installed.”
IRA not responsible — yet: The Inflation Reduction Act’s investment tax credits and other subsidies have driven an expansion of new solar projects and module manufacturing, and some 52 gigawatts of new facilities are scheduled to come online by 2026, at least 16 GW of which are under construction, per Wood Mackenzie.
Q1 growth had more to do with an easing of the supply chain challenges than those beefed up incentives, though, Rumery said, as project lead times span from months to years in length.
“The credit adders [in the IRA] are really opening a lot of opportunities for developers, but it’s going to take time for those projects to actually come online,” he said.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writers Jeremy Beaman (@jeremywbeaman) and Breanne Deppisch (@breanne_dep). Email [email protected] or [email protected] for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
LATEST ON CANADIAN WILDFIRES: A few things to read on the smoke from the Canadian wildfires afflicting much of the U.S….
– Hundreds of flights have been canceled for today because of poor visibility. A number of major events have also been postponed. Schools in the D.C. area have limited outdoor activities.
– President Joe Biden and other Democrats have linked the fires to climate change, which in turn has prompted some criticism from Republicans.
– Breanne wrote an explainer on the dangers of inhaling smoke from the wildfires, laying out who is at risk. Be sure to read that here.
SULLIVAN TALKS US LNG DIPLOMACY IN JAPAN AND KOREA: Sen. Dan Sullivan said part of his agenda with the Japanese during his recent energy diplomacy venture to Asia was to tempt the major U.S. ally away from participating in any energy trade with Russia and to instead subscribe to more supply deals with American exporters — especially the planned Alaska LNG facility.
“You guys are still getting about 10% of your gas from Russia. You are helping fund the Russian war machine, and you’re looking at continuing your investment in what’s called Arctic LNG 2,” Sullivan told Jeremy, recalling conversations with senior government officials. “Don’t do that. We have an alternative.”
Check back in tomorrow for more from the interview about Sullivan’s trip, during which he was joined by U.S. Ambassador to Japan Rahm Emanuel.
HOUSE TASK FORCE TO TAKE UP CHINESE INFLUENCE IN INDO-PACIFIC: Leaders of the House Natural Resources Committee announced the genesis of a new bipartisan task force whose mandate will be to push back on PRC influence in the Indo-Pacific region, Chairman Bruce Westerman said yesterday.
The task force will begin regular meeting and oversight issues soon and consider how Chinese activities such as illegal fishing in the region affect Guam, American Samoa, and the other territories and freely associated states, culminating in a co-delegation to the region during the August recess. Natural Resources has jurisdiction over matters to both groups of islands.
Westerman said the task force was born out of alarm generated by an intelligence briefing he and Ranking Member Raul Grijalva received about Chinese activity in the region.
The two lawmakers, who’ve shared something of an acrimonious relationship as the leaders of the committee, both talked up the importance of having bipartisan agreement on the necessity of thwarting Chinese influence in the Indo-Pacific.
“That should tell you something about how important this issue is to every American,” Westerman said.
Other members include Reps. Aumua Amata Radewagen (American Samoa), Gregorio Kilili Camacho Sablan (Northern Marianas), Jim Moylan (Guam), Harriet Hageman, Doug Lamborn, Rob Whitman, Ed Case, Tom Tiffany, Ruben Gallego, Katie Porter, Teresa Leger Fernandez, and Melanie Stansbury.
SPAIN TO BE FIRST TO 50% RENEWABLES IN EUROPE’S TOP FIVE: Spain is expected this year to become the first among Europe’s top five power consumers to reach 50% renewables as a share of its total power generation, according to analysis from Rystad Energy.
The Spaniards are set to beat out Germany, which still has significantly higher cumulative solar and wind capacity than the other leading economies, as well as France, Italy, and the United Kingdom.
SENATE GOP REQUESTS MORE TIME TO WEIGH IN ON POWER PLANT RULE: More than two dozen senators want EPA to extend its comment deadline for the draft greenhouse gas rules for power plants, arguing the agency’s schedule doesn’t allow time enough for groups to weigh in on the “behemoth” Federal Register notice.
As of now, the comment period ends July 24. Signatories to the letter, led by Sen. Shelley Moore Capito, asked Administrator Michael Regan to schedule more public hearings on the rule and extend the comment period by at least 60 days.
A handful of other groups, including the U.S. Chamber of Commerce, have also requested an extension.
The Rundown
Bloomberg Permits for US energy projects are so bad unlikely allies emerge
