Energy
The Collapse of Commodities in One Simple Chart
The Collapse of Commodities in One Simple Chart
This chart from Macquarie puts the year in perspective for commodity investors. It covers various asset classes including equities, FX markets, bonds, and commodity prices, and charts them YTD in terms of US dollars and expressed as a percentage.
For a simple chart, there is a lot of information here to consider.
For starters, on the far right is the prime culprit in stymying commodity markets: the Dollar Index. The US dollar, which commodities are priced in, has had a big year with close to a 10% return YTD. While the US economy is still suspect at best, it has served as a safe haven for investors this year over markets such as Europe, China, and Japan. As a result, the USD has had the best performance of all of these asset classes listed on the chart.
The other market on the right worth noting is the Nasdaq, home to many of the tech stocks that have kept the US economy chugging along. While some are skeptical of the true value of some of the companies in Silicon Valley, it cannot be denied that the Googles, Facebooks, and Amazons of the world are the key to keeping US growth intact in any capacity.
To the left of the zero mark, things get dire fast.
Precious metals such as gold and silver are down, but this can be mostly attributed to the strength of the dollar. Energy and industrial metals, on the other hand, have been thoroughly routed due to a combination of dollar strength and slowing Chinese growth. Many agricommodities have struggled as well.
The biggest losers of the bunch include rhodium, nickel, iron ore, and lean hogs, all which are down more than 30% YTD.
Energy
Mapped: The Age of Energy Projects in Interconnection Queues, by State
This map shows how many energy projects are in interconnection queues by state and how long these projects have been queued up, on average.
Age of Energy Projects in Interconnection Queues, by State
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
By the end of 2023, more than 11,000 energy projects were in interconnection queues in the United States, waiting for a green-light from regional grid operators to proceed with construction.
This map, created in partnership with the National Public Utilities Council, maps out the average age of active energy projects in interconnection queues by state, using data from Berkeley Lab.
Interconnection Queues, Explained
Interconnection queues are lists of energy projects that have made interconnection requests to their regional grid operators. Once submitted, these requests formally initiate the impact study process that each project goes through before grid connection, forming waiting lists for approval known as interconnection queues.
In recent years, both the number and generation capacity of queued projects have surged in the United States, along with the length of time spent in queue.
According to Berkeley Lab, the amount of generation capacity entering queues each year has risen by more than 550% from 2015 to 2023, with average queue duration rising from 3 years to 5 years the same period.
As a result of the growing backlog, a large proportion of projects ultimately withdraw from queues, leading to only 19% of applications reaching commercial operations.
The Backlog: Number of Projects and Average Wait Times
Of the 11,000 active projects in U.S. queues at the end of 2023, Texas, California, and Virginia had the most in queue; 1,208, 947, and 743, respectively.
When looking at the average ages of these projects, all three states hovered around the national average of 34 months (2.83 years), with Texas sporting 28 months, California 33, and Virginia 34.
Vermont, Minnesota, Wisconsin, and Florida, on the other hand, had the highest average queue durations; 54, 49, 47, and 46 months, respectively.
Average Queue Duration by Project Type
At the end of 2023, more than 95% of the generation capacity in active interconnection queues was for emission-free resources. The table below provides a breakdown.
| Project Type | Average Queue Duration (As of 12/31/2023) | Number of Projects in Queue |
|---|---|---|
| Wind | 40 months | 841 |
| Solar | 34 months | 4,506 |
| Wind+Battery | 34 months | 76 |
| Solar+Battery | 27 months | 2,377 |
| Battery | 24 months | 2,818 |
Wind projects had the highest wait times at the end of 2023 with an average age of 40 months (3.33 years). Solar projects, on the other hand, made up more than 40% of projects in queue.
Overall, reducing the time that these renewable energy projects spend in queues can accelerate the transition to a low-carbon energy future.
According to the U.S. Department of Energy, enhancing data transparency, streamlining approval processes, promoting economic efficiency, and maintaining a reliable grid are some of the ways this growing backlog can be mitigated.
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