Renewables Surpass Coal: Historic Shift in US Electricity Generation
The United States has experienced a significant shift towards renewable energy sources in recent years. In 2022, power generation from renewables such as wind, solar, and hydro surpassed coal power generation for the first time, while in 2023, renewable power generation exceeded nuclear power generation for the second consecutive year. The main driving force behind this transition is the lower cost of renewables compared to other power sources. While natural gas is still the largest source of power generation in the US, the combined share of wind and solar power generation is continuing to increase. This article examines the factors behind the rise of renewable power generation in the US, state-by-state breakdowns, the impact of federal tax incentives, and the potential for continued growth in this sector.
In 2022, renewable energy sources - wind, solar, and hydro - surpassed coal power generation in the United States for the first time according to the Energy Information Agency (EIA). Additionally, renewable power generation exceeded nuclear power generation for the second consecutive year in 2023. This shift to renewable power generation is primarily due to the fact that renewables are the cheapest source of power in most of the country with costs of wind and solar power over the past decade falling 70% and 90% respectively. Natural gas power generation remains the largest source of power in the US, accounting for 39% of the total in 2022, while coal power generation accounted for 20%, and nuclear power generation accounted for 19% in the same year.
Wind and solar power generation combined represented 14% of total power generation in the US in 2022. In terms of individual states, Texas led in wind power generation with 26% of national wind power, while California led in utility-scale solar power generation with 26% of national utility-scale solar power. Federal tax incentives, like the Inflation Reduction Act’s (IRA) $369 billion in climate and clean tech investments primarily in the form of tax credits, have played a crucial role in the shift toward renewable energy sources. It has caused a wave of coal plant closures across the US, which cannot compete economically. As a result, 173 coal plants are set to close by 2030, which represents 54% of the current coal fleet in the country.
In conclusion, the shift towards renewable energy sources in the United States has been steadily gaining momentum, with wind, solar, and hydropower generation surpassing coal power generation for the first time in 2022. This trend is expected to continue as renewables become increasingly cost-effective and bolstered by government incentives. While natural gas remains the dominant source of power in the US, the decrease in the costs of renewable energy has resulted in the closure of numerous coal plants across the country. With the recent passage of the Inflation Reduction Act, which includes significant climate and clean tech investments, the US is poised to make further strides towards reducing greenhouse gas emissions and achieving a more sustainable energy future.
