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
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.