Renewable Energy Surge Expected to Propel U.S. Power Generation Growth

Renewable Energy and EV business

The Energy Information Administration (EIA) predicts that there will be a substantial upswing in U.S. power generation, with wind and solar energy taking the lead over the next two years. The surge is attributed to the installation of new renewable energy infrastructure.

According to the EIA’s projections unveiled on Tuesday, U.S. solar power generation is poised for a remarkable 75 percent increase, surging from 163 billion kilowatt hours (kWh) in 2023 to an anticipated 286 billion kWh in 2025. This growth is fueled by the integration of additional generation capacity and the implementation of favorable tax credit policies.

The electric power sector is anticipated to boost solar capacity by nearly 38 percent within the current year alone. In tandem, wind power generation is expected to experience a moderate yet noteworthy uptick, reaching 476 billion kWh in 2025, reflecting an 11 percent increase. The EIA notes that wind capacity will remain relatively stable throughout the current year.

In contrast, the outlook for coal power generation appears less optimistic, with an anticipated 18 percent decline projected for 2025, dropping from 665 billion kWh in 2023 to 548 billion kWh. Meanwhile, natural gas, currently the largest source of U.S. electricity, is expected to maintain a relatively constant output, hovering at 1.7 trillion kWh in both 2024 and 2025.

Against the backdrop of these developments, it is worth noting that last year, the U.S. power sector generated approximately 4 trillion kWh of power. Renewable sources, including wind and solar, contributed significantly, accounting for 22 percent of the total power generation. The EIA’s projections underscore a notable shift towards cleaner and more sustainable energy options in the nation’s power landscape.