State of Play forRenewable Energy

November 15, 2019EESI/CETSA Hill Briefing

Bill Parsons, Chief Operating OfficerAmerican Council on Renewable Energy

Founded in 2001, ACORE is a nonprofit organization that unites finance, policy and technology to accelerate the transition to renewable energy.

U.S. Annual & Total Renewable Energy Installations:2nd Highest Deployment Ever in 2018

Source: BNEF/BCSE

0.7

2.9 3.0

5.7

9.911.2

6.2

9.4

18.3

8.1

12.8

16.4

22.9

19.0

19.5

0

25

50

75

100

125

150

175

200

0

5

10

15

20

25

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cu

mu

lati

ve C

apac

ity

(GW

)

An

nu

al In

stal

lati

on

s (G

W)

Biomass Hydro Geothermal Solar Wind

3

Continued High Level of U.S. Renewable Energy Investment (Also 2nd Highest Ever)

Source: BNEF

$5.7

$11.5

$28.3$30.5

$34.7

$23.0

$34.6

$50.1

$39.5

$35.8

$38.0

$47.5

$45.5$47.9

$48.5

$0

$100

$200

$300

$400

$500

$600

$0

$10

$20

$30

$40

$50

$60

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

An

nu

al In

vest

men

t ($

US

Bill

ion

s)

Cumulative Investment Annual Investment

Cu

mu

lati

ve In

vest

men

t ($

US

Bill

ion

s)

4

Aggregate Global Investment Exceeds $3.2 Trillion

Global Renewable Energy Investment, 2004 - 2018

Source: BNEF

$2 $9 $11 $17 $26 $37 $42 $46 $57 $63$90

$121$105

$146

$91

$6$12

$28$31

$35 $23$35

$50 $40 $36

$38

$48

$46

$48

$49

$37

$50

$65

$100

$117 $109

$162

$192

$154$133

$159

$150

$143

$133

$149

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$0

$50

$100

$150

$200

$250

$300

$350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cu

mu

lati

ve In

vest

men

t ($

US

Bill

ion

s)

An

nu

al In

vest

men

t ($

US

Bill

ion

s)

Cumulative Investment China United States Other

5

Key Drivers for U.S. Renewable Energy Growth

1. Ambitious state and local renewable standards in populous states

2. Increasing demand from American companies and consumers

3. Dramatic improvements in cost-effectiveness

4. A supportive and predictable tax platform

www.dsireusa.org (updated by ACORE) / Summer 2019

WA: 15% x 2020*

(100% x 2045)

OR: 50%x 2040* (large utilities)

CA: 60%

x 2030

(100% x 2045)

MT: 15% x 2015

NV: 50% x

2030*

(100% x 2050)UT: 20% x

2025*†

AZ: 15% x

2025*

ND: 10% x 2015

NM: 80%x 2040

(IOUs)

(100% by 2045

(IOUs))

HI: 100% x 2045

CO: 30% by 2020 (IOUs) *†

(100% x 2050)

OK: 15% x

2015

MN:26.5%

x 2025 (IOUs)31.5% x 2020 (Xcel)

MI: 15% x 2021*†

WI: 10%

2015

MO:15% x

2021

IA: 105 MWIN:

10% x 2025†

IL: 25%

x 2026

OH: 8.5% x

2026

NC: 12.5% x 2021 (IOUs)

VA: 15% x 2025†

KS: 20% x 2020

ME: 100% x 2050

37 States + DCHave Renewable or Clean Energy Standards

Renewable portfolio standard

Renewable portfolio goal Includes non-renewable alternative resources* Extra credit for solar or customer-sited renewables

†

U.S. Territories

DC

TX: 5,880 MW x 2015*

SD: 10% x 2015

SC: 2% 2021

NMI: 20% x 2016

PR: 100% x 2050

Guam: 25% x 2035

USVI: 30% x 2025

NH: 25.2% x 2025

VT: 75% x 2032

MA: 35% x 2030 + 1% each

year thereafter (new resources)

6.7% x 2020 (existing resources)

RI: 38.5% x 2035

CT: 40% x 2030

NY:70% x 2030

(100% x 2040)

PA: 18% x 2021†

NJ: 50% x 2030

DE: 25% x 2026*

MD: 50% x 2030

DC: 100% x 2032

Clean energy standard

Clean energy goal

Driver #1: State Renewable Energy Directives

7

State Renewable Policies Continue to Get More Ambitious

Aggressive state renewable standards in populous states

• California – 100% Carbon-Free by 2045 and 60% Renewable by 2030

• New Mexico – 100% Carbon-Free by 2045 and 80% Renewable by 2040

• Nevada –100% Carbon-Free by 2050 and 50% Renewable by 2030

• Hawaii – 100% Renewable by 2045

• Washington – 100% Renewable by 2045

• New York – 100% Carbon-Free by 2040 and 70% Renewable by 2030

• New Jersey – 50% Renewable by 2030

• Maine – 100% Renewable by 2050

• Maryland – 50% Renewable by 2030

• Massachusetts – 55% Renewable by 2050

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More than 100 cities and 10 counties have adopted 100% clean energy goals

Ambitious Local Renewable Policies

• Chicago: 100% clean, renewable electricity for all buildings by 2035.

• Denver: 100% renewable electricity community-wide by 2030.

• Los Angeles: 100% clean, renewable electricity community-wide by 2045 and 100% carbon reduction across all sectors by 2050.

• Cleveland: 100% clean, renewable electricity by 2050.

• Portland: 100% renewable electricity community-wide by 2035.

• San Francisco: 100% renewable electricity community-wide by 2030.

• Washington, D.C.: 100% renewable energy by 2032.

• Wake County, North Carolina: 100% clean, renewable energy across all energy sectors by 2050.

• Multnomah County, Oregon: 100% renewable electricity community-wide by 2035, and 100% renewable energy for transportation, heating and cooling by 2050.

9

Driver #2A: Growing Consumer DemandA Record Year for Commercial & Industrial PPAs

Source: BNEF

U.S. Corporate PPA Volumes, by Technology (GW)

10

Driver #2B: Growing Consumer Demand

Annual U.S. Distributed Solar Installations, 2010 - 2018

246 305496

799

1268

2171

26382239 2386

337

830

1075

1109

1054

1061

17072255 2069

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Me

gaw

atts

(M

W)

Residential PV Non-Residential PV Source: SEIA / GTM11

Driver #3: Dramatic Improvements in Cost-Effectiveness of Wind and Solar Power

Source: Lazard

69% Reduction in Wind LCOE since 200988% Reduction in Solar LCOE since 2009

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The Cost-Effectiveness of Wind and Solar Power

Source: BNEF

Unsubsidized Levelized Cost of Electricity Comparison, U.S. 2018

28 36 4067

94

3258

90 97 1056991

60

113

196178

399

318

394

458

0

50

100

150

200

250

300

350

400

450

500

OnshoreWind

Solar PV CCGT Coal Nuclear Onshorewind+battery

PV+battery Gasreciprocating

engine

Pump-hydro Utility-scalebattery

$ /

MW

h

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Driver #4: A Supportive and PredictableTax Platform

100% 100% 100% 100%

86.7%

73.3%

33% 33% 33%

100%

80%

60%

40%

100%

80%

60%

40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020 2021 2022 2023

Pe

rce

nta

ge

of

Fu

ll V

alu

e o

f C

red

it

Solar ITC Solar ITC + Safe Harbor Wind PTC Wind PTC + Safe Harbor

2024

Wind PTC and Solar ITC Phase-Down Schedules

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“The same way we look back today and have pride in the things our grandparents

did to defend democracy — our grandchildren are going to look back and have feelings about what we did today. What those feelings are will depend on

what we decide to do.”

Solomon Hsiang, Director, Global Policy Laboratory at the University of California -

Berkeley

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Bill ParsonsChief Operating OfficerAmerican Council on Renewable Energyparsons@acore.org

Onlinewww.acore.orgTwitter: @ACORE

Address1150 Connecticut Ave NWSuite 401Washington, DC 20036

Thank you

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