September 23, 2020 Read More →

Moody’s: State renewable standards in U.S. a driving force behind renewable energy transition

S&P Global Market Intelligence ($):

A Sept. 22 research note by Moody’s shows the extent to which state policy mandates are driving long-term growth in the renewable energy sector.

Moody’s said the standards that are in place should help renewable power to take up to a 28% share of the power supply by 2030. In 2019, renewable power accounted for 17% of total U.S. power supply.

Since 2010, solar and wind power in China and the EU have grown by 579 TWh and 396 TWh, respectively, compared to 313 TWh for the U.S. over the same period. Renewable sources contribute 27% to China’s power supply and 34% to the EU.

“The lack of a national RPS and uncertainty about federal tax subsidies have contributed to solar and wind power growth well below global peers like China and the European Union,” Moody’s said.

The District of Columbia and 37 states, representing around 75% of total retail electricity demand in the U.S., have renewable energy standards, the report said. The U.S. Southeast and some Intermountain West states stand out as islands without policy mandates. Even so, in states that lack policy mandates, environmental, social, and governance investment, economic development and corporate demand for renewable power are still driving renewable energy growth, Moody’s said.

Nine states representing 20% of total U.S. power demand have goals to reach 100% zero-carbon power between 2040 and 2050. Of that group, California and New York represent the largest markets for growth because of their size and the amount of renewable power on their grids already, Moody’s said. California is the largest renewable energy market in the U.S. “given its strong policy support and the second highest electricity share at almost 7% of U.S. retail demand,” according to Moody’s.

[Justin Horwath]

More ($): State renewable portfolio standards driving growth in the U.S.

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