Research on Nor th  
American Renewable Energy  
Development and Investment  
( B r i e f Ve r s i o n )  
Global Energy Interconnection  
Development and Cooperation Organization  
(GEIDCO)  
Research on North American Renewable Energy Development and Investment  
PREFACE  
Energy is an important material basis for economic and social  
development. The use of energy by mankind, from firewood to fossil  
energy such as coal, oil, and natural gas, to renewable energy such as  
hydro, wind and solar energy, every change is accompanied by a huge  
leap in productivity and major progress in human civilization. Energy,  
as the driving force for the development of modern society, is related to  
the national economy and people's livelihood, as well as to human  
welfare. The massive development and use of traditional fossil energy  
has led to increasingly prominent problems such as resource shortages,  
environmental pollution, and climate change, which seriously threaten  
human survival and sustainable development. In essence, the core of  
sustainable development is clean development. The key is to promote  
clean replacement on the energy production side, and replace fossil  
energy with renewable energy such as solar, wind, and hydropower.  
Scientific and accurate quantitative assessment of resources is the  
critical foundation for large-scale development and utilization of  
renewable energy. At present, the global installed capacity of hydro,  
wind and solar power has exceeded 30% of the installed capacity of  
power sources. Although some achievements have been made in the  
development of renewable energy, there is still huge potential to be  
developed urgently. Therefore, it is of great importance to conduct a  
fine assessment on resource reserves. On the basis of establishing and  
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Research on North American Renewable Energy Development and Investment  
improving the global renewable energy resources database, the Global  
Energy Interconnection Development and Cooperation Organization  
(GEIDCO) has established an assessment system and digital fine  
assessment models of renewable energy resources, carried out  
systematic calculation and quantitative assessment of theoretical  
potential, technical potential installed capacity and economic potential  
installed capacity of hydro, wind and solar energies from a global  
perspective. An achievement of the Global Renewable-energy  
Exploitation ANalysis (GREAN) platform has been made, thereby the  
accuracy and timeliness of global renewable energy resources  
assessment will be effectively improved, which provides important  
support for large-scale development and utilization of renewable energy  
in relevant countries and regions.  
Systematic and efficient macro site selection of power bases is an  
important prerequisite for large-scale development and utilization  
of renewable energy. The site selection of renewable energy power  
bases is related to the cost-effectiveness of power station development,  
which is crucial to the large-scale economic development and efficient  
utilization of renewable energy. There are many factors affecting the  
site selection of power bases, hence the site selection analyses and  
decision-making process are complicated and difficult. The desk top  
study of site selection is often limited by the integrity and accuracy of  
data. Site selection must rely on site survey, which consumes a huge  
amount of manpower, financial resources and time costs. By taking into  
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account such factors as global topography and terrain elevation, land  
covers, water systems, natural reserves, geology and historical seismic  
activity frequency, power supply and power grid, population and  
economy, GEIDCO has developed models and tools for macro site  
selection of renewable energy power bases which significantly increase  
the breadth and depth of data collection and analysis processes, thus  
greatly improving the accuracy, economy and effectiveness of the desk  
top study of site selection, and achieving systematic achievements in  
promoting the development of global renewable energy resources. The  
data collected and analysed by such models and tools are used as  
"Reference Book" and "Data Manual" for the world's energy strategy  
research and policy formulation.  
Focusing on the resource assessment and base development of all  
continents in the world, GEIDCO has prepared a series of research  
reports on renewable energy development and investment in the  
world and in all continents including Asia, Europe, Africa, North  
America, Central and South America and Oceania. This report is  
one of the renewable energy research series focusing on North America,  
which fully shows the achievements in the assessment of renewable  
energy resources and the site selection of large-scale power bases in  
North America. In Chapters 1, 2 and 3, the resource assessment of  
hydroenergy, and the resource assessment and base development  
research of wind and solar energy in North America were completed by  
digital methods. Firstly, the methods, models and data of resource  
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assessment and site selection are introduced respectively. In terms of  
hydropower, the theoretical potential of hydroenergy resources in major  
river basins of North America is calculated, and a cascade development  
scheme is proposed for typical river sections to be developed. In terms  
of wind and photovoltaic power, on the basis of comprehensive  
calculation and analysis of the main factors affecting centralized  
development, the theoretical potential, technical potential installed  
capacity and economic potential installed capacity of wind and solar  
energy in all countries and regions of North America have been  
calculated. Preliminary quantitative assessment is made on the scale of  
distributed development of wind power in the context of selected  
countries in North America. Using the GREAN platform, the site  
selection and layout of large-scale onshore wind power bases and large-  
scale solar photovoltaic power bases in North America are proposed,  
and the assessment of development conditions, development scale and  
the calculation of technical and economic indicators are completed. In  
chapter 4, based on the development trend of energy and electricity  
supply and demand in North America, the power transmission direction  
and mode of large-scale renewable energy bases are studied and  
analyzed by coordinating the regional, trans-regional and trans-  
continental power consumption markets. Chapter 5 reviews the energy  
policies and investment status of major countries in North America,  
analyzes the typical investment modes of renewable energy  
development projects, conducts case studies in the development  
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schemes of large-scale hydro, wind and solar power bases in North  
America, and proposes suggestions on policies and investment modes  
to speed up clean development in North America.  
The Global Renewable Energy Development and Investment series of  
reports made by the GEIDCO are committed to providing guidance and  
reference for the large-scale development and utilization of renewable  
energy around the world and accelerating the implementation of clean  
alternatives on the energy supply side. This report can provide  
guidelines and reference for policy-makers, international organizations,  
energy enterprises, financial institutions, univerisities and relevant  
individuals in renewable energy resource assessment, strategic research,  
project development, international cooperation, etc. However, there  
might be inadequacies as data and time for research and compilation are  
limited. Comments and suggestions are welcome for further  
improvements.  
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CONTENTS  
ꢀ
1. Hydroenergy Resources Assessment and Development......1ꢀ  
1.1 ANALYSIS ON RESTRICTIVE FACTORS .......................... 1ꢀ  
1.2 RESOURCE ASSESSMENT.................................... 3ꢀ  
1.3 BASE DEVELOPMENT ...................................... 5ꢀ  
2 Wind Energy Resources Assessment and Development.......7ꢀ  
2.1 ANALYSIS ON RESTRICTIVE FACTORS .......................... 7ꢀ  
2.2 RESOURCE ASSESSMENT.................................... 9ꢀ  
2.3 POWER BASES DEVELOPMENT ............................... 14ꢀ  
3 Solar Energy Resources Assessment and Development.....16ꢀ  
3.1 ANALYSIS ON RESTRICTIVE FACTORS ......................... 16ꢀ  
3.2 RESOURCE ASSESSMENT................................... 18ꢀ  
3.3 DEVELOPMENT OF PHOTOVOLTAIC BASES........................ 22ꢀ  
4. Outbound Transmission of Large-scale Renewable Energy Bases  
24ꢀ  
4.1ꢀ EASTERN NORTH AMERICA ................................ 24ꢀ  
4.4ꢀ WESTERN NORTH AMERICA ................................ 25ꢀ  
4.3 QUEBEC, CANADA....................................... 27ꢀ  
5. Policy Environment and Investment and Financing Suggestions  
29ꢀ  
5.1 OVERVIEW OF INVESTMENT AND FINANCING POLICIES OF NORTH AMERICAN COUNTRIES  
...................................................... 29ꢀ  
5.2 INVESTMENT AND FINANCING PROPOSAL........................ 33ꢀ  
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1. Hydroenergy Resources Assessment and Development  
NorthAmerica is rich in hydroenergy resources, with a high degree  
of exploitation. In this report, the digital assessment of hydroenergy  
resources in basins of such 11 main rivers as Mississippi, Colorado,  
Columbia, Rio Grande, Frazer, Mackenzie, Nelson, Churchill,  
Eastmain, Rupert, and Nottaway rivers is carried out, and the theoretical  
potential of hydroenergy is estimated to be about 2,137 TWh/a.  
Considering factors such as resource characteristics, development  
conditions and ecological protection, the report adopts the GREAN  
platform to carry out research on the layout scheme of cascade  
hydropower stations and the development scheme of large-scale  
hydroprojects by taking Nelson River as an example. The total installed  
capacity is 4,025 MW, with the annual power generation of 17,256  
GWh.  
1.1 Analysis on Restrictive Factors  
In terms of distribution of water systems, there are many water  
systems in North America, including such world-famous rivers as  
Mississippi, Columbia and Mackenzie. According to the analysis, there  
are 28 first-class rivers with a basin area of more than 2×104 km2, totally  
with a basin area of 1,118×104 km2, accounting for about 53% of the  
total area of North America. The distribution of major river systems in  
the whole continent is shown in Figure 1-1.  
In terms of hydrological data，The North American continent  
studied in the report, based on the basic data of the Global Runoff Data  
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Center which contains the observation data from more than 2,100  
hydrological stations, also covers some river basins along the Pacific  
and Atlantic coasts and islands in addition to the above 28 first-class  
river basins covering a drainage area of more than 20,000 km2. See  
Figure 1-5 for the distribution of major hydrological stations in the  
North American continent.  
Figure 1-1 Distribution of Major Rivers in North America  
In terms of distributions of rock strata，generally speaking,  
areas with stable geologic conditions are selected, and there are no  
large-scale landslides and other geologic disasters near the dam site and  
the powerhouse. The foundation surface of the dam shall be stable  
bedrock with strong bearing capacity, such as metamorphic rocks and  
volcanic rocks. See Figure 1-8 for stratum distribution in North  
America. The northern North America is mainly distributed with mixed  
sedimentary rocks and siliciclastic clastic sedimentary rocks, the  
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western North America with basic volcanic rocks, the southern North  
America with loose sedimentary rocks, and the eastern North America  
with acid plutonic rocks and metamorphic rocks.  
Figure 1-2 Distribution of Major Rock Types in North America  
1.2 Resource Assessment  
Overview of Hydroenergy Resources. There are a total of 12,004  
rivers in North America with a theoretical hydroenergy potential of 50  
GWh and above each. The theoretical potential of hydroenergy  
resources is 4,261 TWh/a, accounting for 9.2% of global total. North  
America's development potential of hydroenergy is distributed in the  
Frazer, Nelson and Mackenzie river basins. Digital assessment and  
calculation of hydro-energy resources in 11 major river basins in North  
America, including Mississippi, Colorado, Columbia, Rio Grande,  
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Frazer, Mackenzie, Nelson, Churchill, Eastmain, Rupert and Nottaway  
rivers are carried out as shown in the report, the distribution of which is  
shown in Figure 1-9, covering an area of 854×104 km2, or 76% of the  
primary rivers in North America, and covering the major hydro-energy  
resources to be developed.  
According to the calculation of the digital platform, the total  
theoretical potential of the 11 basins are about 2,137 TWh/a. According  
to the national statistical assessment carried out by the countries  
involved in the basin, the theoretical hydroenergy potential in North  
America is mainly distributed in the United States, Canada and Mexico,  
among which the United States has the highest theoretical hydroenergy  
potential of 1,064.20 TWh/a, followed by Canada of 1,055.92 TWh/a.  
Figure 1-3 Distribution of 11 Major River Basins in North America  
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1.3 Base Development  
Considering factors such as resource characteristics, development  
conditions and ecological protection, the report has conducted research  
on the cascade hydropower development scheme of the Nelson River  
basin based on the GREAN platform, proposed a layout scheme of  
cascade hydropower station for the river sections to be developed with  
rich hydropower resources, and completed a site selection research for  
major large-scale hydropower projects by taking the Conawapa  
Hydropower Station as an example. The layout of the Nelson  
Hydropower Base is shown in Figure 1-4.  
Figure 1-4 General Layout of Nelson Hydropower Base  
It is estimated by the GREAN platform that the catchment area of  
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the Nelson River basin is 1,123,255 km2, and the main stream is about  
659 km long from Lake Winnipeg, with a drop of 209 m and an average  
channel gradient of about 0.32 ‰. According to the topographic and  
geological conditions and utilization of hydropower resources, the main  
stream of Nelson River will be developed into 10 cascade hydropower  
stations (including five existing hydropower stations), of which five are  
to be developed. The hydropower stations to be developed have a total  
available drop of 84 m, a total installed capacity of 4,025 MW and  
annual power generation of 17,256 GWh.  
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2. Wind Energy Resources Assessment and Development  
North America has good wind energy resources and holds great  
development potential. The report assessed five countries and regions  
in North America, and calculated that the total theoretical potential of  
wind energy resources in North America is 487.7PWh/a. The installed  
capacity suitable for centralized development is about 15.4 TW, which  
is mainly distributed in the central and southern parts of the United  
States and eastern Canada, with 40.2 PWh of annual power generation.  
However, the current development scale is still less than 1% of the  
technical potential installed capacity. Considering the characteristics  
and development conditions of resources, the site selection schemes of  
such 12 large-scale wind power bases as Martin, Arthur and Gadsden  
City Wind Power Bases in the United States were studied and the main  
technical and economic indicators were proposed by using the digital  
platform, with a total installed capacity expected to be 148.0 GW.  
2.1 Analysis on Restrictive Factors  
In terms of distribution of wind speeds, North America holds  
relatively great potential for wind energy development. The distribution  
of wind speeds is shown in Figure 2-1. The eastern and western coastal  
areas and the central onshore areas of the United States and the eastern  
and northern areas of Canada, with rich wind resources and an annual  
average wind speed of more than 6 m/s, are suitable for development of  
large-scale wind power bases.  
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Figure 2-1 Distribution of Wind Speeds in North America  
In terms of land covers, forests, cultivated lands, wetland water  
bodies, urban areas and ice and snow are the main restrictive factors of  
land cover affecting the centralized development of wind power  
resources. North America straddles the tropical, temperate and frigid  
zones, so its climate is complex and diverse. The western North  
America is mountainous and plateauous, with the coastal mountains  
adjacent to the Pacific Ocean, and the windward slopes receive  
abundant rainfall, but they block the warm and humid westerly winds  
of the Pacific Ocean from penetrating eastward, limiting the extension  
of the temperate maritime and Mediterranean climate west of the  
mountains to the east, and the climate is arid, presenting a desert  
landscape. The vast area of central North America is located in the  
northern temperate zone, and the terrain is low and flat with no east-  
west oriented mountains to form, so the landscape is open from north  
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to south, resulting in unimpeded north-south air currents. It forms a  
temperate continental climate with drastic seasonal changes in  
temperature and precipitation, which is suitable for cultivation and  
forestry development. Figure 2-2 specifies the distribution of the above  
mentioned five land covers that mainly restrict the centralized  
development of wind power in North America.  
Figure 2-2 Distribution of Forests, Cultivated Lands, Wetland Water Bodies, Urban Areas and  
Ice and Snow in North America  
2.2 Resource Assessment  
In terms of theoretical potential, according to measurement and  
calculation of wind speed data at a height of 100 m, the theoretical  
potential of wind energy resources in North America is 487.7 PWh/a,  
accounting for 24% of the global total. The eastern and central parts of  
North America are among the regions with the greatest potential  
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development for wind energy resources in the world.  
In terms of technical potential installed capacity, after  
comprehensive consideration of resources and various technical  
constraints, the technical potential installed capacity of wind power  
suitable for centralized development in NorthAmerica is about 15.4 TW,  
and the annual power generation is about 40.2 PWh.  
In terms of distribution, the technically exploitable wind energy  
resources in North America are mainly distributed in the central United  
States and the eastern and northern Canada. The above areas are  
basically below 1500 m above sea level, mainly with herbaceous  
vegetation and shrubs. Except for cities and urban areas, cultivated land  
and conservation areas in the United States and Canada, most of the  
areas are very suitable for the construction of large-scale wind power  
bases. Some areas in the southern United States are densely populated,  
agriculturally advanced and widely distributed with cultivated land, so  
such areas basically do not have the conditions for centralized  
construction of large-scale wind power bases. Southern Mexico have  
poor conditions for centralized development of wind power due to  
dense forests and a large area of farmland. On the whole, affected by  
factors such as land covers and topography, only 10% of the onshore  
areas in North America have the conditions for centralized development  
and construction of wind power bases, and Mexico is more suitable for  
distributed development of wind power resources.  
The wind power installed capacity per unit land area and its annual  
power generation are important indicators to characterize the  
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technically exploitable resource conditions of wind power in a region.  
However, the installed capacity is greatly affected by the terrain slope.  
In comparison, the ratio of annual power generation to installed capacity,  
that is, the number of installed capacity full-load hours (capacity factor),  
can better reflect the advantages and disadvantages of regional wind  
power resources, development conditions and technology. Please refer  
to Figure 2-3 for the distribution of technical available areas for wind  
power generation in North America and their full-load hours.  
In terms of the distribution of wind power technical indicators in  
North America, the average full-load hours for the technical potential  
installed capacity of continent-wide wind power are about 2,610 hours  
(with an average capacity factor of about 0.30). Among them, the full-  
load hours of wind power are about 3,000-3,500 hours in northern and  
eastern Canada, the continental United States, southwestern Alaska and  
northeastern Mexico. The development conditions are favorable, with  
the maximum value occurring near Newfoundland in southeastern  
Canada, exceeding 4,500 hours.  
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Figure 2-3 Distribution of Wind Power Technical Available Areas in North America and  
Their Full-load Hours  
In terms of development cost, according to the estimation of the  
cost level of onshore wind power technology and equipment by 2035,  
considering the transportation and grid infrastructure conditions, the  
average cost for centralized wind power development in North America  
is 4.55 cents, and that in countries of North America is between 2.03  
and 6.31 cents. According to the current global average tariff level of  
about 8 cents, nearly 65% of the technical potential installed capacity  
in NorthAmerica meets the economic requirements, excluding the areas  
far away from roads and power grids and the areas with relatively poor  
wind resources, large topographic relief and poor construction  
conditions. The calculation shows that the economic potential installed  
capacity of wind power in North America is expected to be is expected  
to be 9,985.69 GW according to the cost level by 2035. Under the  
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condition of global wind power average development cost of about 5  
cents, the calculation shows that the economic potential installed  
capacity of wind power in Asia is expected to be is expected to be 7.8  
TW according to the cost level by 2035, accounting for 50% of  
technical potential installed capacity.  
Figure 2-4 Distribution of Wind Power Development Costs in North America  
In terms of economic indicators by country of wind power  
generation in North America, countries and regions with good resource  
conditions and relatively good transportation and grid infrastructure  
have low cost and better cost-effectiveness for wind power  
development. On the whole, most of the wind power resources that can  
be developed in North America are relatively economical, and no  
country has an average development cost of wind power higher than 8  
cents. From the perspective of the most economical development  
regions, the lowest LCOE of wind power in Canada, Saint Pierre and  
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Miquelon (France), the United States, Mexico, Curaçao (Netherlands)  
and other countries and regions is less than 2.5 cents, with good  
development economy, and the lowest development cost occurring in  
the southwest of Fortune, Newfoundland and Labrador in eastern  
Canada, at 2.01 cents.  
2.3 Power Bases Development  
According to the assessment results of wind energy resources in  
North America, considering the characteristics of resources and  
development conditions, large-scale wind power bases in North  
America should be laid out in regions with high technical indicators and  
low development cost. According to the overall local electricity demand  
and the layout of the main strategic power transmission channels of  
energy interconnection in North America, in the future, Martin, Arthur,  
Garden City, Rio Grande and Flagstaff Onshore Wind Power Bases will  
be developed in the United States, with a development scale of 67.06  
GW by 2035. Offshore wind power bases will be developed in Oregon,  
Massachusetts, New York and New Jersey of the United States, with a  
development scale of 45.07 GW by 2035. Keyano, Nitchequon and  
Manicouagan Wind Power Bases will be developed in Canada, with a  
development scale of 26.06 GW by 2035.  
Based on the digital site selection model and software, the above  
12 wind power bases are studied with regard to the development  
conditions, installation scale, engineering assumption, power  
generation characteristics and investment level, and a preliminary  
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development scheme was put forward. The total installed capacity of  
the above 12 wind power bases is about 138.00 GW and the annual  
power generation will be 470.12 TWh/a. According to the long-term  
scheme, the total development scale is expected to exceed 224 GW in  
the future. According to the forecast results of cost for wind power in  
North America by 2035 and investment estimation based on the basic  
situation of the project, the total investment of wind power bases in  
North America is about 177,989 million USD, and the LCOE is 3.08-  
6.88 cents/kWh. See Figure 2-5 for the overall layout of large-scale  
wind power bases in North America.  
Figure 2-5 Layout of Large-scale Wind Power Bases in North America  
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3. Solar Energy Resources Assessment and Development  
North America has good solar energy resources and holds great  
development potential. The report assessed North America, and  
calculated that the total theoretical potential of solar photovoltaic  
resources in North America is 24,551.9 PWh/a, and the installed  
capacity suitable for centralized development is 114.1 TW and is mainly  
distributed in the Pacific coast area of southwestern North America, that  
is, the southwestern United States and most of Mexico, with annual  
power generation of 203.3 PWh. Considering the characteristics and  
development conditions of resources, the site selection schemes of such  
10 large-scale photovoltaic power bases as Midland, Buffalo and  
Syracuse in the United States were studied and the main technical and  
economic indicators were proposed by using the digital platform, with  
a total installed capacity expected to be 105.31 GW.  
3.1 Analysis on Restrictive Factors  
In terms of distribution of global horizontal irradiance, North  
America holds relatively great potential for solar energy development,  
and the distribution of global horizontal irradiance of solar energy is  
shown in Figure 3-1.  
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Figure 3-1 Distribution of Global Horizontal Irradiance of Solar Energy in North America  
The mean annual global horizontal irradiance of the countries and  
regions in the Pacific coast area of southern North America with  
excellent solar energy resources, such as the United States, Mexico and  
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Curaçao (the Netherlands), is above 2000 kWh/m , which is beneficial  
to the development of large-scale photovoltaic power bases.  
In terms of topography, the aspect and slope of the ground will  
affect the angle and spacing of photovoltaic power generation devices,  
thus affecting the amount of electricity generated per unit area. The  
global digital elevation model is adopted to calculate the aspect (0-360°)  
and slope (0-90°) of global grid points, and the grid point longitude and  
latitude coordinates are combined to form important input parameters  
for calculating the inclination angle and spacing of photovoltaic power  
generation devices. Figure 3-2 gives a schematic diagram for the  
distribution of terrain slopes in North America. Generally speaking, the  
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area with a slope lower than 1.5° in North America accounts for about  
40% of the total area. The steep mountain areas with a gradient over 30°  
are rarely distributed.  
Figure 3-2 Distribution of Terrain Slopes in North America  
3.2 Resource Assessment  
In terms of theoretical potential, according to measurement and  
calculation of the solar GHI data, the theoretical potential of solar  
photovoltaic resources in North America is 24,551.9 PWh/a, accounting  
for 12% of the global total. Parts of western and southern North  
America are among the regions with the most development potential for  
photovoltaic resources in the world.  
In terms of technical potential installed capacity, after  
comprehensive consideration of resources and various technical  
constraints, it is estimated that the scale suitable for centralized  
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development of solar photovoltaic resources in North America is 114.1  
TW, and the annual power generation is up to 203.3 PWh.  
In terms of distribution, most of the photovoltaic resources in  
North America, more than 60% of the continent’s total, are mainly  
distributed in the Pacific coast area of southwestern North America, that  
is, the southwestern United States and most of Mexico. Most of the  
above- mentioned regions are below 2,000 m above sea level and are  
mainly covered by shrubs and a small area of bare ground. Except for  
the conservation areas in California of the United States and in Baja  
California, Baja California Sur and Sonora of Mexico, most areas are  
very suitable for the construction of large-scale photovoltaic power  
bases. The full-load hours of photovoltaic technology are below 1,000  
in most areas of northern and eastern North America, providing poor  
conditions for the centralized development of photovoltaic resources.  
Although some areas in the central and northern parts of the United  
States have relatively good solar energy resources, they are densely  
populated, and most areas have cities and cultivated lands that need to  
be avoided during construction of centralized photovoltaic power bases.  
Similar to the technical indicator of wind power, the ratio of annual  
power generation per unit land area to installed capacity, that is, the  
number of installed capacity full-load hours (capacity factor) is also a  
key parameter reflecting the advantages and disadvantages of regional  
photovoltaic resource technology development conditions. Please refer  
to Figure 3-3 for the distribution of technical available areas for  
photovoltaic power generation in North America and their full-load hours.  
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从技术指标来看，全洲光伏技术可开发装机的平均利用小时  
约 1486 小时（平均容量因子约 0.17），其中库拉索（荷）和墨西  
哥全境、美国西南部的太平洋沿岸地区，光伏利用小时在  
1800~2200 小时左右，开发条件优越，最大值出现在墨西哥西部北  
下加利福尼亚州（Baja California）的圣费尔南多（Sanfernando）  
东部，超过 2200 小时。  
Figure 3-3 Distribution of Technical Available Areas for photovoltaic Generation in North  
America and Their Full-load Hours  
In terms of development cost, according to the estimation of the  
cost level of photovoltaic technology and equipment by 2035,  
considering the transportation and grid infrastructure conditions, the  
average development cost of centralized solar photovoltaics in North  
America is 2.57 cents, and the average development costs for each  
country are between 2.27 cents and 4.78 cents. AAccording to the  
current global average tariff level of about 8 cents, nearly all of North  
America’s technical potential installed capacity meets the economic  
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requirements. Under the condition of global PV average development  
cost of about 3.5 cents, the calculation shows that the economic  
potential installed capacity of solar power in North America is expected  
to be 104.8 TW according to the cost level by 2035, accounting for 92%  
of technical potential installed capacity.  
Figure 3-4 Distribution of Development Costs for Photovoltaic Generation in North  
America  
In terms of economic indicators, countries and regions with  
excellent resource conditions and relatively good transportation and  
grid infrastructure have relatively low cost and better cost-effectiveness  
for photovoltaic power development. On the whole, the highest LCOE  
in all countries and regions is less than 8 cents, which indicates that  
some parts of North America have good conditions for large-scale  
development. Among them, some regions of the United States and  
Canada have high LCOEs, which are closely related to their  
photovoltaic resource conditions, local poor transportation and grid  
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integration conditions.  
From the perspective of the most cost-effective development  
regions, the lowest LCOE of photovoltaic power in Mexico and the  
United States is less than 2.0 cents/kWh, showing a high level of cost-  
effectiveness, with the lowest development cost occurring in the south  
of California in the United States, at 1.89 cents/kWh. On average,  
Mexico has the lowest average development cost in countries, namely,  
2.27 cents, and its lowest development cost is 1.9 cents.  
3.3 Development of Photovoltaic Bases  
Large-scale photovoltaic power bases should be laid out in  
regions with high technical indicators and low development cost.  
According to the overall local electricity demand and the layout of the  
main strategic power transmission channels of energy interconnection  
in North America, in the future, seven photovoltaic power bases will be  
developed in the United States, including Midland, Buffalo, Syracuse,  
Roswell, Bluff, Helendale and Lucerne Valley, with a total development  
scale of 91.31 GW by 2035. And three photovoltaic power bases will  
be developed in Mexico, including Apatzingan, Rio Grande and Puerto  
Libertad, with a total development scale of 14.07 GW by 2035.  
Based on the digital site selection model and software, the report  
presents the development conditions, installation scale, engineering  
assumption, power generation characteristics and investment level of the  
above 10 photovoltaic bases, and puts forward a preliminary development  
scheme. The total installed capacity of the 10 photovoltaic bases is about  
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105.30 GW and the annual power generation will be 197.68 TWh/a.  
According to the long-term scheme, the total development scale is  
expected to exceed 178 GW in the future. According to the forecast results  
of photovoltaic cost in North America in 2035 and investment estimation  
based on the basic situation of the project, the total investment of  
photovoltaic power bases in North America is about 57.496 billion USD,  
and the LCOE range is 1.99 cents/kWh - 2.93 cents/kWh. The layout of  
large- scale photovoltaic power bases in NorthAmerica is shown in Figure  
3-5.  
Figure 3-5 Layout of Large-scale Photovoltaic Power Bases in North America  
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4. Outbound Transmission of Large-scale Renewable  
Energy Bases  
Based on the development trend of energy and power supply and  
demand in North America and in combination with the distribution and  
development pattern of renewable energy resources, the report analyzes  
the power delivery direction and transmission mode of large-scale  
renewable energy bases in North America by coordinating the domestic  
power consumption markets of North American countries as well as  
transnational and inter-continental power consumption markets, and  
fully considering such factors as power delivery capacity, transmission  
distance and grid development. The research results have important and  
positive significance for promoting the development of renewable  
energy bases in North America, speeding up the construction of  
domestic power grids of countries and the interconnection of  
transnational and transcontinental power grids, and realizing the wide-  
range optimal allocation and efficient utilization of renewable energy  
resources.  
4.1Eastern North America  
The overall power delivery direction in eastern North America  
is “middle-to-east and north-to- south”. The wind and solar energy  
resources of the United States are mainly distributed in the central  
plains. Large-scale wind and solar power bases could be built in the  
central United States to transmit power eastward to the load centers of  
the Great Lakes region in eastern United States, the Northeastern United  
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States and the Southeastern United States. The Nelson River  
Hydropower Base in Canada in northern North America has its power  
transmitted southward to the load center of the Great Lakes region of  
the United States. Offshore wind power in the eastern United States is  
connected to the nearby load center of the Northeastern United States  
for local consumption, and similarly, the Texas Solar Power Base is  
connected to the expanded Texas power grid for local consumption. The  
long-run transmission scheme for renewable energy bases in eastern  
North America is shown in the following figure 4-1.  
Figure 4-1 Schematic Diagram of Long-run Transmission Scheme for Renewable Energy  
Bases in Eastern North America  
4.4Western North America  
The overall power delivery direction in western North  
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America is “middle-to-west”. The central United States is vast and  
sparsely populated. Clean power from large-scale solar and wind power  
bases needs to be transmitted westward to the western load center for  
consumption through the construction of long-distance transmission  
channels. Mexico is rich in solar energy resources. It could build large-  
scale solar power bases and connect them to the main grid to meet the  
power demand for future continuous industrialization and industrial  
upgrading of Mexico as an emerging economy. In the long term, a UHV  
AC main grid covering the West Coast of the United States and Mexico  
could be built to form a platform for large-scale optimal allocation of  
renewable energy, and realize the cross-season mutual complementarity  
and support of hydropower in Canada, hydropower in the United States,  
solar power in Mexico, and hydropower in Central and South America.  
The long-run transmission scheme for renewable energy bases in  
western North America is shown in the following figure 4-2.  
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Figure 4-2 Schematic Diagram of Long-run Transmission Scheme for Renewable Energy  
Bases in Western North America  
4.3 Quebec, Canada  
Quebec could adopt the future strategy of “sending power  
from the north to the south”. It could further strengthen the local  
power grid, build power transmission channels and enhance the  
combined transmission capacity of hydropower and wind power in the  
north, realizing large-scale outbound transmission and consumption of  
renewable power and supplying power to major cities in southern  
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Quebec and northeastern United States. The long-run transmission  
scheme for renewable energy bases in Quebec, Canada is shown in the  
following figure 4-3.  
Figure 4-3 Schematic Diagram of Long-run Transmission Scheme for Renewable Energy  
Bases in Quebec, Canada  
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5. Policy Environment and Investment and Financing  
Suggestions  
Based on the characteristics of renewable energy resource  
endowment and regional economic development in North America, this  
report comprehensively analyzes the investment and financing policy  
environment of renewable energy in North America, and systematically  
analyzes the North American countries in six aspects such as business  
environment, renewable energy development policy, power industry  
system and market, energy and power investment policy, supportive  
fiscal policy and land, labor and environmental protection policy. This  
report presents financing modes such as making full use of market-  
based financing methods to attract diverse investors from around the  
world based on the mature financial markets in North America, and  
issuing financial products such as stocks and bonds based on project  
income to improve the liquidity of project assets and enhance the  
attractiveness of clean energy development projects, so as to further  
improve the investment and financing environment, expand the scale of  
renewable energy development in North America and realize  
coordinated  
development of economic prosperity  
and  
environmental protection.  
5.1 Overview of Investment and Financing Policies of North  
American Countries  
The business environment of North American countries as a  
whole is among the best in the world. According to the World Bank’s  
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Doing Business 2020, the three major countries in North America are  
ranked 6th, 23rd and 60th out of 190 countries and regions in the world  
respectively, and have kept relatively stable in the ranking in recent  
years.  
North American countries focus on renewable energy  
development, creating better investment opportunities for  
renewable energy projects. In order to ensure the safety of energy  
supply and cope with climate change, the three major countries in North  
America have formulated medium- and long-term clean energy  
development goals, but there is still room for improvement. The United  
States proposes that the carbon emissions of power plants in 2030 will  
be reduced by 32% compared with 2005, and the proportion of power  
generation from renewable energy sources such as wind and solar  
power will reach 28% of the total power generation, which leaves great  
room for improvement.  
North American countries have continuously improved the  
level of competition in the power market and contributed to a  
generally high level of marketization. The United States and Canada  
have a high level of power marketization. Market competition has been  
introduced into power generation, transmission, distribution and retail,  
forming a property right model dominated by private capital. The power  
market is characterized by obvious diversification. Mexico also has a  
high level of power marketization. Private capital is introduced into the  
power generation, and a wholesale competition market mode of  
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splitting power generation and transmission and integrating distribution  
and retail is implemented. The power transmission and distribution  
networks allow the investment by the private capital and foreign capital  
in a public-private partnership. There is still much room for  
improvement in the level of market competition.  
Most foreign investment access policies of North American  
countries are general. Foreign investment on clean energy is  
encouraged, but certain restrictions exist in some industries. Most  
foreign investment access policies of countries are general, but all  
countries clearly impose special restrictions on some industries. The  
U.S. Federal Government implements  
a location and industry  
neutrality policy for foreign direct investment, with state and local  
governments issuing specific implementation policies to attract or  
restrict investment according to local conditions. The United States  
recently announced that it would stop granting preferential treatment  
for developing countries in 25 economies, which has a certain impact  
on foreign investment. Canada has set a ceiling on the proportion of  
foreign capital in special industries such as oil and gas and engineering.  
Mexico stipulates that some industries are controlled by the state and  
no foreign investment is allowed.  
PPP (Public-Private Partnership) mode is mostly adopted in  
the investment of renewable energy projects in North American  
countries. The mode is relatively mature and has great development  
potential. The investment mode of large-scale infrastructure projects  
such as renewable energy projects in North American countries are  
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Research on North American Renewable Energy Development and Investment  
mostly PPP mode. Canada has the most active and mature PPP market  
in the world, and the PPP mode is widely used in large- scale  
infrastructure construction projects such as energy. The PPP market in  
the United States has maintained a rapid growth trend in recent years.  
Mexico allows foreign-funded enterprises to adopt modes of BOT,  
BOO, BDO, BBO and PPP in the field of energy and electricity. The  
PPP mode is widely used in energy sectors such as power generation,  
and the project period is generally about 20-30 years. The U.S. Federal  
Government has not issued special regulations for foreign investors to  
carry out BOT projects. Most BOT projects are carried out by the U.S.  
companies. BOT projects conducted by foreign investors in Canada are  
mainly concentrated on road and bridge projects.  
North American countries have continuously improved the  
level of competition in the power market and contributed to a  
generally high level of marketization. North American countries have  
formulated diversified tax preference policies for investment in  
renewable energy industries. Canada has also set up preferential tax  
policies for renewable technology research and development to fully  
support the development of renewable industries. All three major  
countries have formulated electricity subsidy policies, of which Mexico  
has set adjustment standards for subsidy prices. In addition, the United  
States has implemented a variety of measures to support renewable  
development, including renewable energy bonds and memorandums of  
understanding with wind energy companies.  
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North American countries have relatively loose land use  
policies and tightening foreign labor policies, and implement the  
strict environmental impact assessment system. North American  
countries allow the holding of private land ownership and use rights by  
foreign-funded enterprises through purchase and lease within their own  
territories, while there are a series  
of restrictions on state-owned land.  
For example, according to the U.S. laws, land held by the Bureau of  
Land Management of the U.S. Federal Government shall not be sold to  
foreign enterprises or foreigners. The management policies of foreign  
workers in North American countries are generally tighter, with strict  
work permit examination systems and certain restrictions on the entry  
of foreign workers into their own markets. In terms of environmental  
protection policies, all countries in North America have implemented a  
strict environmental impact assessment review system for renewable  
energy investment, and the investment enterprises will be punished  
accordingly in case of failing to carry out an environmental assessment  
as required.  
5.2 Investment and Financing Proposal  
5.3.1 Making full use of market-based financing  
North America has a developed and mature financial market.  
It shall raise funds by means of market-based financing such as  
commercial loans, issuance of bonds and stocks, trust investment,  
asset operations, etc., and build a clean energy project investment  
and financing platform to attract global capital investment. Give  
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full play to the advantages of market-oriented clean energy funds in  
North America, integrate various types of funds such as industrial  
capital, financial capital, institutional investors, individual investors  
to provide long-term stable financing channels for clean energy projects.  
For example, New York established a 5 billion USD renewable energy  
fund in 2016 to encourage power generation by renewable energy  
sources such as wind energy and solar energy. Bill Gates set up a 100  
million EUR green fund in 2018 to help enterprises develop renewable  
technologies. Amazon announced in June 2020 that it would launch a 2  
billion USD venture capital fund to support companies that build  
"sustainable and low-carbon technologies."  
The PPP mode is widely adopted in the investment and  
financing of large-scale infrastructure projects in North America,  
and it is also relatively mature and has great potential in North  
America. Due to the large scale of investment and multiple risks in the  
clean energy projects, it is recommended to strengthen the current PPP  
mode widely used in large-scale infrastructure investment and  
financing in North America. Government departments and private  
companies shall sign clean energy project contracts and jointly establish  
a PPP project company to raise funds, construct and operate clean  
energy projects, to attract private companies and sectors to participate  
in clean energy investment, and form a cooperative relationship of  
"benefit sharing and risk sharing" between the government and  
enterprises. It would reduce government investment pressure and  
improve project financing capabilities, and meanwhile, the introduction  
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Research on North American Renewable Energy Development and Investment  
of advanced clean energy development technology, management  
concepts and operating experience of private enterprises would improve  
the efficiency of project development, fully attract capital from global  
diversified investors, and expand the clean energy investment scale.  
5.3.2 Issuing financial products such as stocks and bonds  
based on project income  
North America has the most developed bond market in the  
world, and clean energy projects can obtain financing through the  
issuance of financial products such as stocks and bonds based on  
project income. After receiving the available funds, the project  
construction operator could immediately invest in the construction of  
new clean energy projects, and transform illiquid infrastructure stock  
assets into highly liquid financial products, forming a virtuous circle  
and solving the dilemma of funding sources, so as to improve the  
liquidity of clean energy project assets and project profitability.  
Project revenue bonds are issued by the project  
implementation subject or its actual controller and are related to  
specific projects. The funds raised by the bonds are used for the  
investment and construction of specific projects. The funds used to  
repay principal and interest of the bonds come completely or mainly  
from the operating revenue after the completion of the project.  
Compared with ordinary corporate credit bonds, project revenue bonds  
have two main advantages: first, the project revenue bonds are repaid  
with the future cash flow of the project, and their issuance scale and  
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Research on North American Renewable Energy Development and Investment  
financing cost do not depend on the project company but on the project  
itself. Second, compared with ordinary corporate bonds and bank loans,  
project revenue bonds have a long financing period which can usually  
cover the entire operation cycle of the project. The repayment of  
principal and interest of bonds is mainly related to the project situation  
and is less affected by external factors. The core rating elements of  
project financing are the risks during the construction period and the  
operation period of the target project. During the construction period,  
much attention is paid to engineering technology and design risks and  
construction risks. During the operation period, much attention is paid  
to operational risks, market risks, national risks and debt service  
coverage ratio.  
North America has a high level of economic development,  
abundant clean energy resources and a high degree of development, and  
good investment opportunities for clean energy projects. Under the  
demands of economic green development, energy security, and cope  
with climate change, North America needs to further improve the clean  
investment environment and innovate investment and financing modes  
in order to expand the scale of clean development and drive high-quality  
economic development in North America. This report sorts out the  
policy environment of major countries in North America, and proposes  
suggestions including making full use of market-based financing  
methods based on the mature financial markets to attract the  
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participation of diversified investors from around the world, and issuing  
financial products such as stocks and bonds based on project income to  
improve the liquidity of project assets and enhance the attractiveness  
of clean energy development projects, so as to improve the clean  
investment environment in North America, create a new driving force  
for the development of North America's green economy, and realize the  
coordinated development of economic prosperity and environmental  
protection.  
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