Private sector investors plowed more than $56.7 billion into renewable energy and more than $48 billion into enabling grid technologies in the US last year, according to a report from ACORE, the American Council on Renewable Energy.
Furthermore, investors remain confident that renewable energy will continue to grow and offer attractive investment opportunities in the US. The average confidence level among respondents to ACORE's survey over the next three years came in at 77 out of 100.
“Renewable energy remains one of the most attractive investment options in America today,” said Gregory Wetstone, ACORE’s president and CEO. “Over the long-term, however, the renewable sector is going to need predictable policy drivers, competitive power markets and a modernized grid to meet its potential and answer Americans’ growing calls for a clean energy economy.”
Raising $1 Trillion for investment in US renewable energy and enabling grid technologies
ACORE's new survey and report comes one year after it launched a campaign with the goal of raising $1 trillion of US private-sector capital and investing it in renewable energy and enabling grid technologies by 2030. Dubbed $1T 2030: The American Renewable Investment Goal, the campaign is managed by ACORE senior member program Partnership for Renewable Energy Finance (PREF) and based on a just released set of "common sense policy reforms and distinct market drivers that are most essential for growth," the non-profit industry association and advocacy explained at the time.
The capital raised is to be divided roughly between direct private investment in renewable energy and enabling grid technologies, such as energy storage, that serve to improve grid-integration renewables and the development of modern, reliable and resilient power grids.
“Renewable energy has come a long way and is economically competitive, but if we accept business-as-usual projections that predict a decline in annual investment and deployment levels in just a few years due to an uneven policy playing field, we will cede U.S. leadership and the immense range of economic benefits that come from being a dominant player in this booming global industry," said ACORE president and CEO Gregory Wetstone in his opening remarks at the 15th annual Renewable Energy Finance Forum-Wall Street, which ACORE organizes.
"With the $1T 2030 campaign, the investment community is charting a course to modernize America’s energy infrastructure that will create massive economic opportunities over the next decade and beyond.”
A growing roster of US cities and states have adopted ambitious grid modernization and renewable, low- or zero-carbon goals in the past year, ACORE points out. In addition, Congress is considering legislative proposals the could spur investment in renewable energy across the US. "These bills include a new tax credit for energy storage, new national renewable energy and clean energy standards, a federal price on carbon emissions, and a technology-neutral tax credit for carbon-free electricity generation," according to ACORE.
ACORE zoomed in on the following as highlights of its $1T 2030 survey and progress report:
Renewable energy maintains its attractiveness compared with other asset classes in respondents’ portfolios
Most 2019 survey respondents indicated that the U.S. continues to be an attractive venue for investment compared with other leading countries
More than one-third of survey respondents plan to increase their investments in U.S. renewables by more than 10% in 2019 compared to 2018; no respondents reported that they would decrease their investments by more than 5%
Utility-scale solar and energy storage tied as the most attractive renewable energy investment options between 2019 and 2022, with onshore wind close behind
Investors cited the low cost of renewable energy, expanded state renewable portfolio standards, increased demand from corporate end-users, the potential for new carbon legislation, and a rush to benefit from the tax credits before they sunset among their main reasons for optimism over the next three years
The report concludes with ACORE explaining its near-term strategic focus toward as it works to achieve the $1T 2030 goal. That includes "acceleration of energy storage deployment, modernization of power markets, and an expanded marketplace that includes a broader pool of investors and buyers."