The Deloitte 2019 Renewable Energy Outlook highlights that renewable energy saw impressive growth in 2018 and the fundamental market drivers are poised to continue this year.
For example, the US renewable energy sector remained remarkably resilient, gaining ground despite uncertainty about the effects of federal tax reform legislation and a spate of new import tariffs.
Some of the core fundamentals that drove growth in 2018 were declining costs of wind and solar generation, advances in battery storage technology, as well as grid operators’ growing expertise and expanding toolset for integrating intermittent renewable power into the grid.
Growing appetite for renewables
Utilities demonstrated strong “voluntary demand,” as opposed to the demand driven by policy mandates we’ve seen in the past.
Voluntary procurement represented 52% of utility-scale solar projects in development and 73% of projects announced in the first half of 2018.
This demand was partly driven by corporations’ rapidly growing appetite for renewables. As of mid-October 2018, corporations had purchased nearly 5GW of renewables through a variety of procurement routes.
Demand from consumers was also robust in 2018, and the findings of the Deloitte Resources 2018 Study demonstrate some of the sentiment behind these trends.
More than half of all residential survey respondents (53%) indicated that it is extremely or very important to them that part of their electricity supply comes from renewable sources, trending upward since 2013.
And about half (48%) of business respondents are working to procure more electricity from renewable sources.
By Marlene Motyka, US and Global Renewable Energy Leader at Deloitte