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The Energy Markets in Flux: Looking Back on 2014

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The Energy Markets in Flux: Looking Back on 2014

The Energy Markets in Flux: Looking Back on 2014

Last year, so much changed in the energy market that it takes a bit of extra time to digest it all.

The oil price crashed, but as we showed in last week’s Chart of the Week, even that was not able to stop the glut that is currently being experienced in the United States.

Geopolitical events involving Ukraine and the Middle East prominently affected energy as well. Russia flexed muscles by halting exports of natural gas to Ukraine in June 2014 over a debt dispute. Though exports resumed in December, Ukraine is now buying over 60% of gas from European suppliers like Poland and Slovakia.

The price of thermal coal also continued its decline. Though this is a less followed story than oil, it has big repercussions on countries that use coal as a big part of their energy mix. Meanwhile, wind energy was the second most added energy type in terms of capacity behind natural gas. Many European nations now have a big piece of their energy mix covered by wind: Denmark (39%), Spain (23%), UK (9%), Germany (8%) and Italy (6%).

Want to know how much solar, wind, oil, gas, or nuclear energy it takes to power a major city for a year? Check out our Powering New York slideshow.

Original graphics from: ICIS

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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.

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The preview image for a state-level U.S. map showing the number and average age of energy projects in interconnection queues as of December 31, 2023.

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 TypeAverage Queue Duration
(As of 12/31/2023)
Number of Projects in Queue
Wind40 months841
Solar34 months4,506
Wind+Battery34 months76
Solar+Battery27 months2,377
Battery24 months2,818

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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