GlobalData’s latest report, “North and South America Renewable Energy Policy Handbook 2021,” offers comprehensive information on the renewable energy policies of American countries. The report provides a clear overview of the regulatory framework, plans, programs and incentives launched by different countries to promote renewable energy sources. It provides information on financial incentives, renewable energy auctions, net metering, renewable energy targets and other plans implemented by the government or utilities of nine key U.S. countries – the United States. United, Canada, Mexico, Brazil, Argentina, Chile, Colombia, Peru and Venezuela. The report also covers each of the 50 states in the United States and 11 provinces and territories in Canada.
In 2020, solar photovoltaic (PV) held a 34% share in the renewable capacity mix among the nine North and South American countries covered by the report. The segment is expected to account for 51% of cumulative installed renewable capacity by 2030. This is largely due to net metering policies in the region, particularly in North American countries. The introduction of the California solar mandate which came into effect on January 1, 2020, which requires all single-family homes and multi-family homes up to three stories to have solar PV installation, and the extension of the tax credit to investment (ITC) in the United States are expected to lead the segment.
Canada and the United States have overseas growth strategies at the federal level, as well as at the state / territory level. The combined offshore wind capacity in the nine countries covered by the report is expected to grow at a CAGR of 93.4% during the period 2021-2030, with most of the capacity additions coming from the United States. This expected growth is driven by favorable policies, including the US government’s goal of adding 30 GW of offshore wind capacity by 2030. The US government has also defined provisions providing for a 30% tax credit for wind farms. offshore wind facilities that begin construction before 2026. At the state level, several states, such as Maryland, Massachusetts and New Jersey, have set exclusions for offshore wind in their Renewable Portfolio Standard (RPS) targets . Auctions will continue to fuel this segment in the United States and throughout the region.
In the Americas, only the United States, Canada, and Argentina have a functioning RPS system, however, it has helped set achievable national renewable energy goals, while focusing on improving l grid infrastructure, which provided priority access to renewable power plants. In Canada and the United States, PSRs are defined at the state or territory level. States like California, Colorado and Hawaii have set RPS targets to achieve 100% renewable electricity generation by 2045-2050.
In January 2021, California became the first state in the United States to introduce a microgrid incentive program, which aims to provide a pricing system for microgrids. The $ 200 million program aims to fund clean energy micro-grids to meet the critical needs of vulnerable communities affected by grid outages and to test new technologies or regulatory approaches to inform future actions. In May 2021, Hawaii became the second US state after California to introduce a micro-grid tariff. This is a unique trend that should promote microgrids in the long run.