In 2023, the US electric power sector produced 4017 bn kWh of electric power. Renewable sources – wind, solar, hydro, biomass, and geothermal – accounted for 22% of generation, 874 b kWh, in 2023. Annual renewable power generation overtook nuclear generation for the first time in 2021 and coal generation for the first time in 2022.
EIA forecasts that in contrast to the growing generation from renewables, power generation from coal will decline 18% from 665 bn kWh in 2023 to 548 bn kWh in 2025, and that natural gas will continue to be the largest source of US electricity generation, with about 1700 bn kWh of annual generation in 2024 and 2025, a similar figure to 2023. It expects nuclear power generation to stay relatively flat, rising from 776 bn kWh in 2023 to 797 bn kWh in 2025.
New installations of generating capacity support the increase in EIA’s renewable generation forecast. Wind and solar developers often bring their projects on line at the end of the calendar year. So the new capacity tends to affect generation growth trends for the following year.
Solar is the fastest-growing renewable source because of the larger capacity additions and favourable tax credits policies. Planned solar projects increase solar capacity operated by the electric power sector 38% from 95 GW at the end of 2023 to 131 GW by the end of 2024. Wind capacity is expected to stay relatively flat at 156 GW by the end of 2024, compared with 149 GW in December 2023.
Images: Monthly US electric power sector electricity generation (Jan 2018 to Dec 2025) billion kWh (Source: EIA)
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