Elawan bags Google PPA for 37-MW solar project in Texas
Sep 19, 2024 13:49 CESTThis is an executive summary of materials prepared by Solarplaza International BV, in conjunction with their upcoming Solar Asset Management Texas conference, which represents an overview of the Texan Solar Photovoltaic (PV) Market in 2023.
Current Status
- 17.2 GW of operational capacity reached at the end of 2022, with an investment of around $20.6 billion. Texas is currently the second largest solar market in the United States.
- Very important for the local Texan economy; over 10,000 residents work in the solar industry.
- 5% of Texas electricity generation is solar.
Market Developments
- In the next 4 years, 36 GW of new solar capacity is expected to come online. Therefore, Texas is set to become the largest PV market in the US with an expected cumulative solar capacity of approx. 57 GW.
- As much of Texas’ solar investments have been spent on large-scale projects, Texas will soon overtake California as the state with the most utility-scale solar.
- Solar storage demand in Texas is surging while developers are also taking advantage of new tax credits for stand-alone storage. It is estimated that Texas' planned storage capacity will soon exceed 28.5 GW.
- Solar project developers in the United States now have the possibility to choose between two subsidy types: a one-time investment-based incentive provided by the Investment Tax Credit (ITC) or a ten-year production-based incentive by the Production Tax Credit (PTC). The choice and/or balance between the two depends on factors like the project’s expected capacity factor, investment costs and its eligibility for bonuses.
Opportunities
- Low costs for land.
- High solar irradiance in certain areas of Texas. High demand in others.
- Projected long-term stability due to government initiatives.
Challenges
- Work needs to be done to expand the transmission capacity.
- Lack of grid capacity could lead to project delays.
- Potentially high costs due to congestion rent.
Conclusion
Gaining the above insights as well as networking with like-minded peers, vendors, and investors is key to a well-rounded understanding of the Texan solar energy market in 2023.
Solarplaza is honored to be able to share this information with you and more of the same will be shared, discussed, and made available at our next edition of the Solarplaza Solar Asset Management Texas conference!
Prepared by Nicole Malley
Elawan bags Google PPA for 37-MW solar project in Texas
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