Enerdatics' analysis of US renewable energy projects reveals that over 50 GW of solar and wind projects are expected to come online in 2024. Here are the key points for our analysis:
Strategic geography and easier interconnection process drive capacity addition in ERCOT: Of the capacity that is expected to come online in 2024, ~90% has already secured interconnection approval. In addition to favorable land costs and abundant solar irradiance, the market's streamlined 'connect and manage' approach expedites grid integration by prioritizing localized upgrades over comprehensive network overhauls.
PJM and MISO bring reforms in the CAISO to witness a slowdown in capacity addition growth, as grid interconnection backlog piles up: Compared to other markets, CAISO's capacity buildout growth rate has fallen, as it struggles to clear interconnection application backlog from previous years. The operator has recently asked FERC to cancel the study process for any requests submitted this year, as it has not started studying last year’s requests yet, which totaled 350 GW.
interconnection process to expedite installations: PJM and MISO are set to experience a y/y rise in capacity buildout in 2024. PJM's shift to a "first-ready, first-served" approach aims to reduce speculative projects and queue withdrawals, streamlining the process. MISO's cluster study method and simplified application process have also driven project advancement.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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