U.S. Power Generation: 2022 Review

Trends and changes

U.S. Power Generation: 2022 Review
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2022 was a wild year in global Energy markets broadly - Russia/Ukraine, the natural gas spike and collapse, high oil prices, tight diesel supplies, and the Inflation Reduction Act (IRA), among other items, kept energy market observers on their toes

U.S. power markets are expected to witness a significant transition toward renewable energy in the coming years on the heels of the IRA passage

Enersection analyzed 2022 U.S. lower-48 generation data to provide a review and baseline for upcoming changes

2022 coal generation dropped by 7% versus 2021 despite high natural gas prices, highlighting the structural nature of its decline

Solar (+20%) and wind (+15%) continue to take market share
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U.S. Power Stack in Picture

The U.S. generates approximately 4 TWHrs annually.  Growth over the last decade has been minimal, driven by efficiency gains.  Electrification of the U.S. economy will accelerate growth rates soon.

Wind and solar totaled roughly 15% of U.S. generation in 2022.

Despite significant spending on renewable capacity, low-carbon fuel sources have only grown from 30% of the U.S. power stack to 39% over ten years.

High growth in wind and solar capacity and generation are needed in order to materially change the U.S. generation stack.

Growth rates in wind and solar should increase due to IRA spending, but may not materialize until 2024.