PV to account for more than 60% of new US electricity generation in 2024
The recent Short-Term Energy Outlook report released by the U.S. Energy Information Administration (EIA) forecasts that U.S. electricity generation is expected to add 114 billion kWh in 2024, a year-over-year increase of about 3%, with utility-scale PV capacity providing most of the growth, about 60%, and that U.S. electricity generation will add 33 billion kWh in 2025, a year-over-year increase of 1%.
EIA says PV installations are a key driver of the energy transition in the U.S. With 19GW of installed capacity added to utility-scale PV at the end of 2023, PV plants will generate 41% more electricity in 2024 (66 billion kWh) than in 2023, compared to the 37GW of utility-scale PV capacity scheduled to be added this year. The increase in PV generation will be particularly noticeable in the summer of 2024 (June to September). A further 25% increase in PV power generation is expected by 2025 (58 billion kWh)
Despite forecasting a 3% increase in electricity generation this year, the EIA says the power sector will consume roughly the same amount of natural gas as it did last summer, which was the most on record for the sector. However, photovoltaics and other renewable energy sources have a long way to go if the U.S. is to achieve its goal of a decarbonized economy, the EIA said, adding that about 6% of the U.S. gross domestic product (GDP) is spent on energy. In total, U.S. energy currently emits nearly 5 billion metric tons of carbon dioxide, and the EIA predicts that there will be no meaningful reductions in emissions by 2025.
Annual installed PV capacity additions in the U.S. are projected to grow from less than 22GW in 2022 to nearly 55GW by 2030. Private sector innovation, combined with stable, long-term public policies, will put the U.S. PV industry on a path to achieve these more aggressive goals to combat climate change and decarbonize the economy.
Seraphim is a Tier 1 solar module manufacturer, listed by BNEF. We research, develop, produce, and sell solar PV products since 2011.
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