Wind, Solar & Batteries to Account for 82% of Power Capacity Additions in US in 2023
Solar will account for more than 50% of all new capacity additions
March 7, 2023
Around 82% of the new utility-scale generating capacity planned to come online in the United States in 2023 will comprise wind, solar, and battery storage, according to the Energy Information Administration (EIA).
Solar
The growth of utility-scale solar capacity in the United States was relatively slow until 2010. However, with significant drops in the cost of solar modules and the introduction of tax incentives through state and federal policies, the adoption of solar power began to accelerate rapidly.
As of January 2023, the U.S. had an operational utility-scale solar capacity of 73.5 GW, representing 6% of the total capacity.
Solar power is set to dominate the U.S. electricity generation landscape in 2023, with just over half of the new generating capacity expected to come from solar. If all the planned solar capacity additions come online as projected, this year will see the highest amount of solar capacity added in a single year in the history of the U.S. power sector.
Moreover, 2023 will be the first year that solar power accounts for more than 50% of all new capacity additions in the country, marking a significant milestone in the transition to clean energy.
The United States needs to deploy 40-90 GW of solar and 70-150 GW of wind energy annually until 2030 to decarbonize the country’s power sector by 2035.
Wind
Wind power had a negligible presence in the U.S. electricity generation landscape before 2000. However, with the introduction of tax incentives, lower construction costs for turbines, and new renewable energy targets, wind capacity has seen a significant surge in growth.
As of January 2023, 141.3 GW of wind capacity is operating in the United States, representing 12% of the country’s total electricity capacity.
In 2023, developers plan to add an additional 7.1 GW of wind capacity to the grid.
The majority of U.S. wind capacity is located in the country’s central region, where strong and consistent winds coupled with wide-open prairies make it ideal for large wind farms.
However, offshore wind farms along the coastline offer enormous potential for future wind capacity growth. Despite the vast untapped potential, only one new offshore wind farm is planned for development in 2023.
Battery Storage
Battery storage systems are becoming more commonly integrated with wind and solar projects. In 2023, developers plan to add 8.6 GW of battery storage power capacity to the grid, effectively doubling the total battery capacity.
While there has been a substantial increase in renewable energy capacity in the past decade, the varying output of different types of power projects has resulted in wind and solar, which accounts for 17% of the country’s utility-scale capacity in 2021, producing only 12% of the total power generated in the U.S.
However, with battery storage technology, these sources can now produce and distribute energy more effectively, bridging the gap between potential and actual energy production and boosting the share of renewable energy in the country’s electricity mix.
In December, EIA said that project developers and owners in the U.S. would add up to 30 GW of utility-scale battery storage capacity until 2025.