The clean energy revolution is upon us, and the U.S. grid is feeling the growing pains. A staggering 2,600 gigawatts (GW) of renewable energy projects, primarily solar and wind, are lined up waiting to connect to the grid . This clean energy tsunami is more than double the existing generating capacity in the U.S., signifying a strong shift towards low-carbon power. The Inflation Reduction Act of 2022, with its incentives for clean energy development, likely serves as a major driver behind this surge.
California leads the pack with nearly 450 GW of renewable energy projects in its interconnection queue, followed closely by Texas, illustrated in Exhibit 1 and Exhibit 2. Interestingly, the top five states with the most clean energy waiting to connect contribute to over half of the total demand. But here’s the rub: while the desire for clean energy is strong, the process to connect these projects to the grid is agonizingly slow. On average, it takes a project between 3 to almost 6 years to navigate the studies and permitting needed before construction can even begin. This significant wait time acts as a major hurdle in the clean energy transition.
The rest of this article is available to ADI Plus subscribers.
Log in or subscribe to unlock ADI Plus content >>
Have questions? We're happy to help.
About ADI Analytics
ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy transition, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
We also host the ADI Forum that brings c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum.
Subscribe to our newsletter or contact us to learn more.