In 2010 investment in wind power continued to accelerate, particularly in California and Texas. California also entered several solar projects in the race for financing. The finish line that renewable power developers and their partners are racing to meet is a December 31 deadline to qualify for federal cash grants.
December 31 is the deadline that renewable power developers are racing to meet. That is when renewable energy project developers that are seeking cash grants from the U.S. government must have their projects approved and a small percentage of each project under way. So throughout 2010, particularly in the third and fourth quarters, there has been a “mad dash for cash,” as developers, regulators, investors, and channel partners (those covering the entire lifecycle of a technology) work long and hard to make sure their projects meet qualifications for the Section 1603 Cash Grants, established as part of the American Recovery and Reinvestment Act of 2009 (ARRA).
California Sets the Pace
As is often the case, California set the pace for the rush to renewables. Data tracked by Industrial Info Resources show that 13 renewable energy projects with an aggregate generating capacity of 2,186 MW were scheduled to kick off in the state this year. Concentrated solar power (CSP) was by far the leading type of renewable energy project scheduled to break ground in California during 2010, accounting for 1,256 MW of the state’s new renewable generation.
By technology type, the other renewable energy projects scheduled to start in California this year include:
- Wind power, 6 projects, 650 MW
- Photovoltaics, 1 project, 230 MW
- Geothermal, 1 project, 50 MW
The Golden State, which was requiring utilities to obtain 20% of their electricity from renewable sources in 2010, further increased its renewable energy standard (RES). In September, the state’s Air Resources Board (ARB) ruled that 33% of California’s electricity must come from renewable energy sources by 2020. The ARB action was another step toward fulfilling A.B. 32, a state law passed in 2006 that mandated lowering California’s greenhouse gas emissions to 1990 levels by 2020.
California’s 33% RES “is going to further diversify and secure our energy supply while also growing California’s leading green technology market, which will lead to cost savings for consumers,” ARB Chairman Mary D. Nichols said in a statement.
Though it is perhaps most obvious in California, the rush to renewables is also evident across the U.S. and Canada. Across North America, Industrial Info Resources is tracking $43.8 billion in renewable energy generation projects that are scheduled to kick off in 2010. Wind power is scheduled to garner the lion’s share of this investment at 51% ($22.5 billion), followed by solar at 36% ($15.8 billion), hydro at slightly less than 9% ($3.8 billion), biomass (about 2%, or $800 million), geothermal (about 1.6%, or $700 million), and landfill gas (about 0.5%, or $200 million), as illustrated in the figure.
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