The Next Big Obstacle in Renewable Energy Is a Big Opportunity for Investors
The United States is in the midst of a historic energy transition away from fossil fuels to low- and zero-carbon electric power. In 2020 alone, the nation could add 20,400 megawatts of onshore wind capacity and 12,700 megawatts of utility-scale solar capacity, according to the U.S. Energy Information Administration (EIA).
That would be a record volume of additions (assuming the coronavirus pandemic doesn't delay construction timelines), but it creates one significant challenge for future renewable energy growth: transmission capacity. It's often overlooked in the discussion of renewable energy stocks, but transmission is one of the largest sources of planned capital investment for many power generators through 2035.
Considering transmission is accounting for an increasing share of revenue and earnings growth for many electric utilities, it's something investors need to begin paying closer attention to.
Source Fool.com
