As the renewable energy industry heads into 2023, soaring demand and attractive, long-term incentives are creating strong tailwinds, but this momentum could be tempered by some of the same headwinds the sector encountered in 2022. Explore five trends that could help address these challenges and accelerate growth in the longer term.
In 2022, US renewable energy growth slackened its pace due to rising costs and project delays driven by supply chain disruption, trade policy uncertainty, inflation, increasing interest rates, and interconnection delays. Many of these challenges will likely carry over into 2023, creating strong headwinds. But growth will likely accelerate, powered by robust demand and the record-breaking raft of clean energy incentives in the Inflation Reduction Act (IRA).
Growing demand in 2023 could exacerbate supply chain constraints and interconnection bottlenecks, further boosting prices and extending project timelines. Also, transmission limitations could continue to hamper growth until capacity is significantly expanded. However, the evolving trends and opportunities that follow could help the industry navigate headwinds as it grows in 2023 and set the stage for faster growth in 2024.