The US Energy Information Agency (EIA) released its latest report on February 15, 2024, revealing significant projections for the country’s energy landscape. According to the Preliminary Monthly Electric Generator Inventory, the United States is poised to add an impressive 62.8 gigawatts (GW) of new utility-scale electricity generating capacity in 2024.
This surge, a 55 percent increase from the 40.4 GW added in 2023, underscores the ongoing transformation of the energy sector. The EIA notes that the United States now generates nine times more electricity than in 1950, with the shift towards electricity replacing fossil fuels in various applications, such as vehicle power, building climate control, and industrial processes like steel and cement production. As this trend continues, experts anticipate a doubling or even tripling of electricity demand by 2050.
The lion’s share of the 62.8 GW planned for 2024, amounting to 58 percent, will be provided by new utility-scale solar installations, totaling 36.4 GW. This significant increase follows challenges faced by the solar industry in 2023, with only 18.4 GW added due to supply chain and permitting issues. Additionally, 14.3 GW, or 23 percent, will be contributed by new battery storage facilities, marking a pivotal role in supporting the grid. In total, solar and battery storage will account for over 80 percent of the new electricity capacity in the United States this year.
Texas, California, and Florida are expected to lead the charge, collectively responsible for over half of the new solar installations in 2024. Texas alone will contribute 35 percent, while California and Florida will add 10 percent and 6 percent, respectively. The Gemini solar facility in Nevada, set to commence operations in 2024, is poised to become the largest solar project in the US, boasting a planned photovoltaic capacity of 690 megawatts (MW) and battery storage of 380 MW.
Battery storage capacity in the US is also on the rise, with a reported 70 percent annual increase in 2023, adding 6.4 GW. Expectations for 2024 include nearly doubling this capacity, reaching 14.3 GW. Texas and California are forecasted to contribute 82 percent of this new capacity, highlighting the growing demand for electricity storage.
However, the role of gas-fired generation is undergoing a shift, with developers planning only 2.5 GW of new electricity capacity from thermal generation powered by methane gas in 2024. This marks the lowest amount of new gas capacity in 25 years, with 79 percent coming from simple-cycle methane gas turbine (SCGT) plants, indicating a transition in the role of gas-fired generation to support the fluctuations in renewable electricity.
The report also highlights the delayed completion of the fourth reactor (1.1 GW) at Georgia’s Vogtle nuclear power plant, now scheduled for March 2024. The Vogtle project, marred by significant cost overruns, serves as a cautionary tale about the challenges and financial burden associated with nuclear energy.
In conclusion, while the IEA report signals positive strides in clean electricity in America, concerns arise over the country’s dependence on Chinese manufacturing for critical components, such as solar panels and battery cells. This dependence raises questions about the sustainability and security of the US energy infrastructure in the long run.