BMI View: Ongoing governmental support by the Obama administration continues to foster prospects for renewable energy in the US as private investment levels rise. While wind energy remains the strongest sector in overall capacity terms and will also experience the majority of added capacity in 2015, protracted uncertainty surrounding the PTC scheme undermines wind power reaching its true potential. Conversely, we hold a bright outlook for the solar sector, due to innovative financing vehicles in both the utility-scale and the rooftop segment, and particularly for residential installations due to prospects of 'smart' solar.
Over the past years, the US has increasingly shifted towards becoming a global renewables powerhouse. In 2014, the country had the highest level of renewable energy in its overall energy consumption since the 1930s, when wood was still a crucial part of its energy supply. The country boasts a large renewables industry as well as high installed capacity and generation levels, in terms of sheer numbers. The combination of government subsidies and state-level renewable energy targets and policies have led to high levels of investment and enabled the sector to expand rapidly over the past decade. Nonetheless, support for renewable energy installations differs between states, leading to significant imbalances of renewable shares within the US.
We expect strong growth to continue over the coming quarter and through 2024, with total non-hydropower renewables capacity to grow at an average annual rate of 3.7% over the next 10 years. Supporting our positive view for the market, in March 2015 the US Energy Information Administration (EIA) announced renewables (wind and solar) will account for the majority of new power capacity additions in 2015.
Key Trends And Developments
The United States Renewables Report researched at source contains BMI Research's assessment of the current renewables market in United States. The report also contains historical data together with forecasts to end-2018 covering electricity generation (TWh) and electricity capacity (MW).
The renewables sectors covered in the report include Wind, Solar, Geothermal, Tidal and Wave, and Biomass (See Table of Contents for exact coverage). The report also features details on government green energy agendas and funding opportunities, as well as presenting a detailed list of key renewables projects currently being planned or undertaken in United States, their capacity, the timeframe of construction and their current status.
The report discusses the various energy policies currently in force, including targets, subsidies and the relevant infrastructure developments or limitations which might impact on renewables growth, analysing the potential effects of regulatory changes in conjunction with the background macroeconomic outlook. Finally, there is a general overview of the competitive landscape in United States, together with a detailed summary of the main utilities and manufacturers present and their business operations.
BMI's United States Renewables Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with unique independent forecasts and competitive intelligence on the United States renewables industry.
- Benchmark BMI's independent renewables industry forecasts for United States to test other views - a key input for successful budgeting and planning in the renewables market.
- Target business opportunities and risks in the United States renewables sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in the country.
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering the renewables market in United States, regulatory changes, major investments and projects and significant multinational and national company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the renewables sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2010-2012) and forecasts to end-2018 for electricity generation (TWh) and electricity generating capacity (MW) for each individual renewables sector present in the country.
These in turn are broken down into:
Electricity Generation: Overall capacity (TWh), growth % change year-on-year, KWh per capita, % of Total Non-Hydropower renewables generation, % of total electricity generation.
Electricity Capacity: Overall capacity (MW), growth % change year-on-year, % of non-hydroelectric renewables capacity and % of total capacity.
These forecasts are in turn supported by explicit assumptions, in conjunction with analysis of the key risks to the main forecast.
Business Environment Rankings
BMI's Renewables Business Environment Rankings provide fully comparable Risk-Reward Rankings aimed at investors in the regional renewables market.
The rankings methodology makes sophisticated use of various industry, economic and demographic data point.