Solar industry set to soar as US grapples with insatiable energy needs
As Dan Shugar, the CEO of Nextracker Inc., stated, the unyielding demand for electricity in the United States is poised to overshadow obstacles confronting the solar industry, driving an unprecedented surge in panel installations.
Speaking at Bloomberg’s San Francisco bureau, Shugar highlighted utilities’ urgent quest for new energy sources to cater to the demands of burgeoning data centers, electric vehicles, and heating and cooling systems.
Simultaneously, with the retirement of traditional fossil fuel and nuclear power plants, solar emerges as a cost-effective and rapid solution, prompting a significant increase in deployment.
Following years of stagnant electricity demand, utilities anticipate the most substantial escalation in usage in decades.
According to the Boston Consulting Group, consumption at US data centers alone is anticipated to triple by the end of the decade, reaching up to 390 terawatt hours, equivalent to approximately 7.5% of the nation’s projected electricity demand.
Also read: New York set new records for hourly wind and solar generation
“Utilities need to keep the lights on and they need power,” said Shugar, whose company provides sun-tracking equipment and software that serve as the skeletal and nervous systems of solar plants. “it’s kind of showtime for the solar industry,” he added.
According to data from the US government cited by Nextracker, solar energy is the most rapidly expanding energy source in the United States, with a projected annual growth rate of 26% compounded through 2028.
Despite challenges such as permitting delays, connection issues for solar farms, and elevated capital costs due to rising interest rates, this growth trajectory remains robust, as Shugar emphasizes.
One major catalyst for this expansion is the significant number of solar projects currently in progress, made feasible by the steep decline in panel costs. Further driving this trend is the introduction of tax incentives embedded in President Joe Biden’s Inflation Reduction Act.
Capitalizing on these developments, Nextracker has revealed plans for establishing over 25 gigawatts of annual manufacturing capacity in the US.
CalPERS allocates nearly $10 billion to climate action...
-
The California Public Employees’ Retir...
- 05/07/2024
Eco-gamers launch online video game to target asset...
-
A team of eco-gamers known as Serious Pe...
- 01/07/2024
EU regulators push for revisions in landmark ESG...
-
Regulators overseeing the markets, banki...
- 19/06/2024
Related News
ERM, a sustainability consultancy company, announced that it has commenced offshore trials to test the key elements of its Dolphyn Hydrogen process. The trials mark […]
European Energy announced that it had acquired grid connection approvals for nearly 500 megawatts (MW) of solar and wind energy projects across Romania. The approvals […]
In its second-quarter update, Shell announced that it would incur an impairment charge of up to $2 billion following the sale of its Singapore refinery […]
The California Public Employees’ Retirement System (CalPERS) announced a commitment of almost $10 billion to advancing global efforts to transition to a low-carbon economy. This […]
The European Commission announced that it has approved a €10.82 billion French scheme to support offshore wind energy deployment. It aims to help foster a transition […]
ENGIE announced that it signed a 7-year Biotmethane Purchase Agreement (BPA) with BASF. According to the agreement, ENGIE will supply the chemicals company with 2.7 […]