How US renewable electricity generation will grow
The US Office of Energy Infrastructure has published an analysis of how the sector will develop over the next two years. According to the document, electricity generation in the US will largely depend on alternative energy sources. Wind and solar power will be the leaders. The introduction of new equipment will facilitate this.
Renewable electricity forecasts
The EIA estimates that solar power generation will increase by 75% to 286 billion kWh by 2025. This compares to 163 billion kWh in 2023. According to experts, one of the key factors in the development of the sector is the government’s introduction of tax incentives. The incentives allow producers to increase the number of generation facilities and modernise capacity to improve efficiency. In 2024, the number of solar power generation facilities in the US will increase by about 35%.
As for wind power generation:
– it will increase to 476 billion kWh by 2025;
– there will be a growth of 11% compared to 2023.
In 2024, this indicator will remain at the previous period’s level.
Against the increasing interest in renewable energy sources, we can expect a decrease in demand for fossil raw materials. For example, experts predict a decline in electricity generation from coal:
– in 2025, it will fall by around 18% to 548 billion kWh;
– in 2023, electricity production from this sector will be 665 billion kWh.
Natural gas is now the largest source of electricity in the US. Production in this sector is likely to remain almost unchanged between 2024 and 2025. The EIA forecasts 1.7 trillion kWh.
Overall, the US energy market generated 4 trillion kWh of electricity in 2023. The renewable sector accounts for 22% of total generation.
Global trends
The global renewable energy capacity growth rate in 2023 was the best in 20 years. This is according to data published by the International Energy Agency (IEA). The key factor in this case was the countries’ achievement of climate targets.
Last year, electricity generation from renewable sources grew by 50%. Such dynamics increase the chances of achieving the global goal of a 3-fold growth of renewable energy capacity by 2030. This will significantly reduce the use of fossil fuels.
Solar power capacity grew the most in 2023. About 75 per cent of all new facilities installed in this period belong to this sector. Most of these facilities are in China, leading to solar power generation. The US, EU countries and Brazil also performed well.
