The United States produced more electricity last year than it did from coal, according to data from the Energy Information Administration (EIA). The EIA says that renewables are replacing fossil fuels because of falling costs and rising subsidies.
“Economic growth paired with increasing electrification in end-use sectors results in stable growth in U.S. electric power demand through 2050 in all cases,” noted the EIA. “Declining capital costs for solar panels, wind turbines, and battery storage, as well as government subsidies such as those included in the Inflation Reduction Act (IRA), result in renewables becoming increasingly cost-effective compared with the alternatives when building new power capacity.”
Because it offers incentives for wind and solar power generation, the Inflation Reduction Act will significantly impact renewable energy sources in the United States.
The EIA states that renewables are progressively fulfilling power needs. This year, the government agency anticipates that renewable power capacity will expand in all regions of the United States.
However, the capacity of renewable power will fluctuate based on the availability of resources. In some instances, power may be generated by combining renewable and fossil fuel sources.
Natural gas, coal, and nuclear generation share have decreased in the meantime. By 2030, the EIA anticipates a significant decline in coal-fired generation. From the current levels (around 200 GW), coal-fired generation is anticipated to drastically decrease by about 50%, and it will continue to gradually decline in subsequent years. Between 23 and 103 GW of coal-fired capacity is anticipated by 2050.