Technological advancements and costs of renewable energy resources, combined with the growing competitiveness of battery storage, have elevated renewables to the most competitive energy sources.
FREMONT, CA: Despite supply chain bottlenecks, increased shipping costs, and rising commodity prices, capacity installations remained at an all-time high. Many cities, states, and utilities have established aggressive clean energy goals, such as boosting renewable portfolio standards and mandating energy storage purchases. Renewable energy growth is expected to accelerate as climate change concerns and support for environmental, sustainability, and governance (ESG) factors expand. Next-generation technology development is accelerating.
Stakeholders in the renewable energy industry are exploring investing in them, which will eventually assist in securely integrating variable renewables like wind and solar into the electric grid. Private investment and pilot projects, paired with federal research backing, might help accelerate the commercialization of technologies such as green hydrogen, enhanced batteries, and other types of long-duration storage in an industry mainly focused on solar and wind. These technologies can provide zero-carbon and longer-term seasonal electricity storage, alleviate grid congestion, reduce renewable curtailment and increase reliability.
New business models are emerging
Solar photovoltaic (PV) systems are the most cost-competitive energy alternatives on the market, thanks to cost reductions over the last decade. As it exercises its competitive muscle, the solar sector will undoubtedly increase its attempts to explore novel configurations and business models. Combining storage and solar provides cost savings, operational efficiencies, and the ability to lower storage capital costs through the solar investment tax credit.
Transmission infrastructure is becoming increasingly important, particularly for offshore wind. Transmission development is critical for connecting new, often remote-located renewable energy production to electricity-consuming cities, is likely to be a significant priority for the renewable energy industry. Policy and regulatory support, investments, and innovation will almost certainly assist in accelerating progress, which has been impeded by sitting and permitting delays.
Supply chain tactics are constantly evolving
The renewable energy industry's supply chains will likely evolve further as profits have recently suffered due to logistics-related cost constraints. The solar sector remained under pressure, with prices increasing yearly due to component, raw material, and labor shortages, as well as rising transportation costs. Renewable energy developers will most likely seek alternate suppliers, including domestic manufacturers, where accessible; reassess supply demands, and develop replacements to help alleviate these pressures.