Accelerated by the Inflation Reduction Act, solar capacity will more than triple from 2021 to 2030 and battery storage will jump exponentially, predicts BNEF. For more, read US Renewable Power Set to Get More Than 20% Boost From New Climate Law.
- Enough solar power plants will be built from this year through 2030 to generate 364 gigawatts of electricity, BNEF estimates. That’s more than three times the capacity of all US solar plants in operation last year.
- A gigawatt is roughly the output of a commercial nuclear reactor and, depending on the region, can power 750,000 homes.
- BNEF predicts147 gigawatts of new wind installations, many of them in coastal waters along New England, the Mid-Atlantic, and toward the end of the decade, California.
- The IRA also includes a new tax credit for large energy storage systems — typically, big packs of lithium-ion batteries — plugged into the power grid. BNEF forecasts 107 gigawatts of storage installations through 2030, up from just 5.7 gigawatts in use this year.
Path to 100% Perspective:
The passage of the IRA means there has never been a better time to make a long-term investment in U.S. decarbonization goals, but just investing in renewables is not enough. Solar and wind are variable, and will need a reliable backup to maintain the grid. As renewables become the new baseload, the need for flexible power generation and reliable storage solutions will be more important than ever.
In its Front-Loading Net Zero report released in 2020, Wärtsilä Energy outlined the benefits of investing now in predictable, low maintenance, renewable energy and storage technology.
“Flexibility creates the conditions where renewable energy is the most profitable way to power our grids: ensuring back-up power is available when there’s insufficient wind or solar,” according to the report. “Investing in renewable baseload is now viewed as buying ‘unlimited’ power up-front, as opposed to betting against fluctuating oil prices and narrowing environmental regulation.”