Utilities Sell Off Renewable Assets

Utilities are selling off their renewable portfolios. Prices are high – allowing for a healthy profit – but the decision may be due in part to a combination of investor skepticism and a renewed focus on the regulated side of utilities’ businesses.

Renewable Project Costs Continue to Climb

Meanwhile, renewable project costs remain stubbornly high, as well. Solar, in particular, has been plagued with delays and is sensitive to high interest rates. Several offshore wind projects in the US Northeast have either been scrapped or are under renegotiation with PPA prices increasing by 27% to 66%.

Hydrogen Rollout Slows, but Investment is Higher than Wind

Hydrogen continues to gain momentum, although delays with 45V guidance and Hydrogen Hub program are slowing the industry’s advance in the US. Nevertheless, since the Inflation Reduction Act’s passage a year ago, hydrogen projects have received 3x more funding than wind projects ($5.1B vs $1.7B).