Record levels of wind and solar generation additions are expected to come online in 2022, according to a new report from S&P Global Market Intelligence.
"It's going to be a record year for renewable energy development in the U.S. in 2022,” with 44 gigawatts (GW) of solar and 27 GW of wind power set to be installed alongside more than 8 GW of battery storage, said Richard Sansom, Head of Commodities Research at S&P Global Market Intelligence.
The report said that the growth in wind, solar and storage will be facilitated by the creation of dedicated programs such as virtual power purchase agreements and green tariffs.
At the same time, early plant retirement costs due to the energy transition will present challenges for utilities and state regulators with 29 GW of coal retirements planned for 2020 through 2025.
The report also said that U.S. utility capital expenditures are expected to remain on the upswing, with investments in upgrading and modernizing the country's aging energy and water infrastructure reaching $63 billion and utility renewables spending surpassing $14 billion in 2022.
The S&P Global Market Intelligence 2022 Electric, Natural Gas and Water Utilities Outlook Report is part of a "Big Picture Outlook" series published by the division's research group that provides a look ahead of key strategic trends and opportunities.