The United States produced and consumed more electricity from renewable energy than coal for the third year in a row in 2022, according to a recent report from the US Energy Information Administration (EIA).
The production of wind and solar energy increased dramatically in the past few years, and in 2022 contributed 14% of electricity produced in the US. The production of coal dropped from 14.256 quadrillion Btu in 2019 to 11.934 in 2022.
“This booming growth is driven largely by economics,” said Gregory Wetstone, president and CEO of the American Council on Renewable Energy in a report by the Associated Press. “Over the past decade, the levelized cost of wind energy declined by 70 percent, while the levelized cost of solar power has declined by an even more impressive 90 percent.”
“Renewable energy is now the most affordable source of new electricity in much of the country,” he added. But natural gas and crude oil still produce majority of the country’s electricity.
Wind and solar are expected to contribute more in the coming years. The EIA projects that wind will contribute 12% in 2023 from 11% in 2022, while solar will also add one percentage point to 5% in 2023. Coal is expected to continue to fall, they’re seeing it go from 20% in 2022 to 17% this year.
Last year’s landmark Inflation Reduction Act (IRA) enabled many of these renewable energy projects to go online last year and it will likely further impact the acceleration in production in the coming years.
Information for this briefing was found via the Associated Press and EIA, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
