Solar Leads Renewables Charge

·??????Electricity consumption jumped to surpass pre-pandemic levels but remained below last year

·??????Electricity generation similarly grew to stabilize to pre-pandemic levels

·??????Solar electricity generation shines at the forefront of renewable energy sources

Electricity consumption jumped to surpass pre-pandemic levels, although it remained below last year (6% MoM/ -1%YoY/ 1% YoY4). The residential sector registered the largest gains, followed by commercial, industrial, and transportation. Electricity generation grew to stabilize to pre-pandemic levels (10% MoM/ -3% YoY/ 0% YoY4). Higher demand was met with fossil fuels as electricity generation from fossil fuels rose in equivalent amounts. It includes natural gas, coal, and petroleum; natural gas was heavily used, mainly due to price dynamics, to the detriment of coal.

Electricity generation from renewable energy sources also demonstrated substantial developments. Under this umbrella, solar generation shone at the forefront. Solar-generated electricity was up across all periods and unmatched by any other renewable source. For instance, wetter weather throughout the U.S. boosted hydroelectric generation monthly but displayed mixed signals otherwise. Wind-powered electricity generation was similarly inconsistent; it declined monthly but showed double-digit growth compared to prior years.?

Solar’s dominance occurred in parallel with a climb in solar electricity generation capacity (3% MoM/ 23% YoY/ 129% YoY4). Both utility-scale and small-scale capacity projects contributed to the expansion. Generally, utility-scale projects are responsible for around two-thirds of capacity, and their weight did not change significantly over time. Capacity’s accelerated ascent is twofold, overcoming challenges associated with supply-chain disruptions and supportive policy that created generous tax incentives. Notably, the boom in solar electricity generation projects will not occur uniformly across the nation. States like Texas and California will advance faster than others; combined, they account for over two-fifths of solar capacity additions and more than two-thirds of battery storage capacity additions. Some local communities within the U.S. oppose renewable energy projects, but tailwinds remain strong.

'YoY4?= comparison with pre-pandemic 2019