Calculations of the US federal government (the latest tally by the US Energy Information Administration) reveals that almost all new power plant built in the US this year will be carbon-free. The data shows that only 16% will be natural gas. Meanwhile, cheap wind and solar power will take over the market, supplying 70% of new capacity.
The majority of new electricity capacity coming online will come from large-scale solar plants. So, even though wind and solar currently make up a minor share of the country’s electricity production, they’ll supply the bulk of new energy in 2021. And overall, 84% of all new plants built this year will deliver electricity without burning fossil fuels.
This tabulation only counts utility-scale projects and spans competitive markets and states where monopoly utilities are in control. Meaning rooftop solar and batteries aren’t included in the tally. Nevertheless, the data indicate that the power industry has embraced wind and solar power to such an extent that they dominate new constructions.
Breaking it down:
- Solar will deliver 39% – the most new-capacity
- Wind follows with 31%
- The current dominant fuel source for US electricity – natural gas – will only account for 16% of new power plant capacity
- Battery storage will grow to 11% of new capacity
- If the long-awaited nuclear plant in Georgia Vogtle) finally brings its reactors online, then nuclear will contribute 3%
On the opposite side of the spectrum is 2021’s retiring power capacity, which coal plants will account for 30% and nuclear 56%. Nuclear plants produce emissions-free power 24/7, but a few significant facilities will be shutting down this year.
New York’s Indian Point Unit 3 will close, and The Exelon Corporation is shutting down its Byron and Dresden plants in Illinois. Together, those three power plants account for 5% of the country’s nuclear fleet, or up to 5.1 gigawatts.
This is a remarkable shift from just a few years ago when fossil fuels dominated the market landscape. The transition reflects the continued reduction in renewables’ cost as the industry scales up and supply chains mature. Clean energy looks less threatening as the prices drop and big power companies begin to choose it to meet their need.
Furthermore, all major publicly traded utility companies in recent years have pledged zero-emissions by 2050. That’s definitely going to get the ball rolling.
