Renewable energy – solar, wind, geothermal, hydropower, biomass – accounted for more than 90% of total US electrical generating capacity added in 2024, according to data released yesterday by the Federal Energy Regulatory Commission (FERC) and reviewed by the SUN DAY campaign.
Solar alone accounted for over 81% of the new capacity. Moreover, December was the 16th month in a row in which solar was the largest source of new capacity.
Renewables made up the lion’s share of new generating capacity in December and in 2024. In its latest monthly “Energy Infrastructure Update” report (with data through December 31, 2024), FERC says 105 “units” of solar totaling 4,369 megawatts (MW) came online in December, along with two units of wind (324 MW) and two units of biomass (45 MW). Combined, they accounted for 86.9% of all new generating capacity added during the month. Natural gas provided the balance: 717 MW.
During the full 2024 calendar year, solar and wind added 30,816 MW and 3,128 MW, respectively. Combined with 213 MW of hydropower, 51 MW of biomass, and 29 MW of geothermal steam, renewables accounted for 90.5% of added capacity. The balance consisted of the 1,100 Vogtle-4 nuclear reactor in Georgia, plus 2,428 MW of natural gas, 13 MW of coal, 11 MW of oil, and 28 MW of “other.”
Solar was 80.1% of new capacity in December and 81.5% during 2024. Solar accounted for 81.5% of all new generating capacity placed into service in 2024 – 50% more than the solar capacity added in 2023.
In December alone, solar comprised 80.1% of all new capacity added.
New solar capacity added in 2024 is almost nine times that added by natural gas and nuclear power combined.
Solar has now been the largest source of new generating capacity added each month for 16 months straight, from September 2023 – December 2024.
Adjusting for the differences in capacity factors among solar, nuclear, and natural gas, the new solar capacity added in 2024 is likely to generate seven times as much electricity as the new nuclear capacity and about five times as much as might be expected from the new natural gas capacity.
Solar + wind are now almost 22% of US utility-scale generating capacity. New wind accounted for much of the balance (8.3%) of capacity additions, which is more than either the new natural gas capacity (6.4%) or nuclear power capacity (2.9%).
Taken together, the installed capacities of just solar (10.2%) and wind (11.7%) now constitute more than one-fifth (21.9%) of the US’s total available installed utility-scale generating capacity.
However, approximately 30% of US solar capacity is in the form of small-scale (e.g., rooftop) systems that aren’t reflected in FERC’s data. Including that additional solar capacity would bring the share provided by solar + wind closer to a quarter of the US total.
With the inclusion of hydropower (7.7%), biomass (1.1%), and geothermal (0.3%), renewables now claim a 31.0% share of total US utility-scale generating capacity. If small-scale solar capacity is included, renewables are now about one-third of total US generating capacity.
Solar’s share of US generating capacity is now 10x greater than a decade ago. As noted, by the end of 2024, solar and wind accounted for 10.2% and 11.7%, respectively, of all installed utility-scale generating capacity in the US, while the mix of all renewables accounted for 31.0%.
In December 2023, FERC reported that solar and wind were 7.9% and 11.7% of installed capacity while the mix of all renewables provided 29.0%.
Five years ago (December 2019), FERC released data showing solar and wind to be 3.5% and 8.5% of total capacity while all renewables combined were 22.1%.
A decade ago (December 2014), FERC reported that solar and wind were 1.0% and 5.5% of total capacity, while the combination of all renewables accounted for 16.6% of capacity.
Solar will soon become the second-largest source of US generating capacity. FERC reports that net “high probability” additions of solar between January 2025 and December 2027 total 91,558 MW – an amount almost four times the forecast net “high probability” additions for wind (23,601 MW), the second-fastest growing resource. FERC also foresees growth for hydropower (1,345 MW), geothermal (90 MW), and biomass (61 MW).
Taken together, the net new “high probability” capacity additions by all renewable energy sources would total 116,655 MW, with solar comprising over 78% and wind providing another 20%.
On the other hand, there is no new nuclear capacity in FERC’s three-year forecast, while coal, oil, and natural gas are projected to contract by 23,925 MW, 2,293 MW, and 833 MW, respectively.
If FERC’s current “high probability” additions materialize, by January 1, 2028, solar will account for nearly one-sixth (16.1%) of the US’s installed utility-scale generating capacity. That would be greater than either coal or wind (both 12.6%) and substantially more than either nuclear power or hydropower (both 7.3%).
In fact, assuming current growth rates continue, the installed capacity of utility-scale solar is likely to surpass coal and wind within the next two years, placing solar in second place for installed generating capacity, behind natural gas.
Meanwhile, the mix of all renewables is now adding about two percentage points each year to its share of generating capacity. Thus, by January 1, 2028, renewables would account for 37.3% of the total available installed utility-scale generating capacity – rapidly approaching that of natural gas (40.2%) – with solar and wind constituting more than three-quarters of the installed renewable energy capacity.
All renewables combined are on track to exceed natural gas within three years. As noted, FERC’s data don’t account for the capacity of small-scale solar systems. If that’s factored in, within three years, total US solar capacity could surpass 320 GW. In turn, the mix of all renewables would then exceed 40% of total installed capacity while the share of natural gas share would drop to about 37%.
Moreover, FERC reports that there may actually be as much as 222,443 MW of net new solar additions in the current three-year pipeline in addition to 68,815 MW of new wind, 8,659 MW of new hydropower, 199 MW of new geothermal, and 127 MW of new biomass. By contrast, the net new natural gas capacity potentially in the three-year pipeline totals just 19,438 MW. Thus, the share of renewables share could be even greater by early 2028.
“For more than a decade, renewable energy sources – led by solar – have dominated growth in US generating capacity,” noted the SUN DAY Campaign’s executive director Ken Bossong. “Consequently, efforts by the Trump Administration to reverse this trend are both illogical and likely to fail.”
Electrek’s Take
FERC’s latest data further illustrates how utterly ridiculous Trump’s “national energy emergency” executive order is. The steady growth of clean energy, which has kept large energy markets like Texas out of trouble during weather events, disproves Trump’s claims that the US clean energy supply is “precariously inadequate and intermittent.”
Further, his refusal to even define solar and wind as “energy” in that executive order isn’t going to stop their progress, and both he and his new secretary of energy, Chris Wright, telling lies about renewables isn’t going to make them any less clean, affordable, or reliable.
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A visitor observes a computer bay at the PA10 data center, operated by Equinix Inc., in Paris, France, on Thursday, Feb. 6, 2025.
Bloomberg | Bloomberg | Getty Images
In some advanced economies, electricity infrastructure and cost of utilities are undergoing structural changes because of artificial intelligence-driven demand for data centers.
In the process, U.S consumers could be paying higher utility bills because of the sector shifting costs to consumers, warned a latest paper by the Harvard Electricity Law Initiative.
Meanwhile in the U.K, residents may experience higher wholesale prices in light of a proposed reform to the electricity market that would favor data centers which harness renewable energy.
As pricing concerns emerge, regulation and energy grid reform will take center stage in managing energy prices and meeting changing energy needs.
‘Complex’ special contracts
Special contracts between utilities and data center companies are one of the ways higher costs associated with data centers may transfer onto everyday consumers, identified a report by the Harvard Electricity Law Initiative in March.
Such contracts “allow an individual consumer to take service under conditions and terms not otherwise available to anyone else.” In other words, they can be used to shift costs from data centers to consumers because of the subjectivity and complexity in those contracts’ accounting practices, the report stated.
Moreover, special contracts are approved by the Public Utilities Commission but tend to undergo “opaque regulatory processes” that make it difficult to assess if costs have been shifted from data centers onto the consumer.
To remedy this, the report recommended regulators tighten oversight over special contracts or completely do away with them and opt for existing tariff practices.
“Unlike a one-off special contract that provides each data center with unique terms and conditions, a tariff ensures that all data centers pay under the same terms and that the impact of new customers is addressed by considering the full picture of the utility’s costs and revenue,” according to the report.
Jonathan Koomey, a researcher in energy and information technology, concurs with the need for data centers to pay according to their usage of the energy grid.
“The key point, in my view, is that highly profitable companies who impose costs on the grid with big new loads should pay the costs created by those new loads,” Koomey told CNBC.
Beyond utility companies and regulators, “intervenors in the utility regulatory process also play a critical role,” Koomey said.
Intervenors can include a specific group of constituents or a large commercial or industrial customer who partake in proceedings. They may raise issues pertaining to customer service and affordability and ultimately allow for commissions to hear from a broad group of stakeholders.
“They often can dig deeper than the overburdened regulators into the projections and technical details and reveal key issues that haven’t yet surfaced in regulatory proceedings,” Koomey added.
Overbuilt infrastructure?
Another factor affecting utility prices is the excessive development of energy infrastructure.
Utilities and pipeline companies in the states of Virginia, North Carolina, South Carolina and Georgia are planning a “major buildout of natural gas infrastructure over the next 15 years,” potentially based on an overestimation of data center load forecasts, highlighted a report by the Institute for Energy Economics and Financial Analysis in January.
Proactive decisions on the part of utilities and regulators are needed to prevent ratepayers from being “on the hook” for overbuilt infrastructure, said the IEEFA report.
Policymakers across states have adopted a slew of measures to incentivize, curb and regulate the influx of data center development, from tax breaks to legislative bills, with a focus on ensuring non-data centers consumers do not bear undue costs, according to a report by the Gibson Dunn Data Centers and Digital Infrastructure Practice Group.
Zonal pricing
In the U.K, data centers and consumers face a different pricing challenge amid government plans to transform the country’s electricity market into a decarbonized, cost-effective and secure electricity system.
The zonal pricing scheme that is being explored under the government’s Review of Electricity Markets Arrangements would mark a shift away from uniform pricing to a split electricity market. Under the new framework, consumers in different geographical zones would be subject to different wholesale electricity prices based on the marginal cost of meeting demand at that location.
Modeling from consulting firm Lane Clark and Peacock suggests that Northern Scotland would experience lower wholesale prices owing to their high renewable penetration and relatively low demand.
The rest of the U.K, accounting for 97% of national electricity demand, is poised to see a rise in wholesale prices from the current national pricing model.
The impact on retail prices remains murky as yet.
“It is not clear how this may impact retail prices as wholesale prices are only one part of the overall electricity bill for consumers, and DESNZ still needs to make various decisions,” according to joint comments from Sam Hollister, Head of Energy Economics, Policy, and Investment and Dina Darshini, Head of Commercial and Industrial at Lane Clark Peacock’s energy transition division, LCP Delta.
The DESNZ is the U.K.’s Department for Energy Security and Net Zero.
Will data centers benefit?
While tech firms appear onboard with thelower costs that zonal pricing stands to offer, based on think tank research supported by Amazon, OpenAI and Anthropic, whether data centers do in fact stand to benefit from zonal pricing would depend on their type of operations, according to Hollister and Darshini.
Those potentially well-suited for zonal pricing include data center facilities that handle workloads that can be shifted in time or location, they said.
AI training for deep learning models is one such example. Such workloads can be scheduled during off-peak hours when electricity prices may be lower and synchronized with periods of surplus wind or solar power, which would reduce costs and alleviate grid congestion.
Similarly, data centers that do not need to be close to major urban centers or end users — such as those supporting hyperscale AI training, cloud and large-scale data storage facilities or scientific computing hubs — could also benefit from cheaper electricity when located in regions with high renewable generation and low local demand, Hollister and Darshini said.
However, “not all AI workloads are flexible — real-time inference tasks, such as those used in chatbots, fraud detection, or autonomous vehicles, require immediate processing and would not benefit from time-shifting,” they added.
Latency-sensitive applications such as financial trading and real-time streaming that require close proximity to users would also find zonal pricing “less viable.”
Boosting grid infrastructure
Proponents of zonal pricing point to the benefits of reducing the need to move energy over long distances.
But with the National Energy System Operator’s plans to increase network capability and connect more offshore wind, focusing on grid infrastructure is important, “and zonal pricing won’t eliminate those requirements,” according toHollister and Darshini.
“It’s not just data centers that are going to need this additional capacity on the grid, they’re probably the most high profile ones, but EV charging is going to change the grid. National Grid as an organization have been talking about the change in the demand profile from EVs for a very long time,” David Mytton, a researcher in sustainable computing, told CNBC.
The demands on the energy grid posed by the electrification of vehicles is a challenge shared across the U.S. and U.K.
While the electricity consumption of U.S. data centers is growing at an increasing pace, a report by the Lawrence Berkeley National Laboratory published in December noted that this is playing out against a “much larger electricity demand that is expected to occur over the next few decades from a combination of electric vehicle adoption, onshoring of manufacturing, hydrogen utilization, and the electrification of industry and buildings.”
Given this, the infrastructural and regulatory reforms that emerge out of data center management would be helpful for an imminent era of changing electricity demand, said Mytton and fellow researchers.
A new report claims that President Trump’s tariffs have disrupted Tesla’s plan to source parts for the upcoming Cybercab and Tesla Semi production in China.
The trade war started by President Trump and his constantly changing tariffs has thrown a wrench in the plans of most supply chain managers worldwide.
Tesla is no exception.
For most of its manufacturing programs in the US, the American automaker imports a significant number of parts from China, Mexico, Canada, and Europe.
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This includes its upcoming vehicles: Cybercab and Tesla Semi.
Tesla aims to start production of the vehicles at Gigafactory Texas and a new factory in Nevada later this year and ramp up to volume production in 2026.
Reuters reports that Tesla has suspended plans to source certain parts for the upcoming Cybercab and Tesla Semi from China:
Tesla’s plans to ship components from China for Cybercab and Semi electric trucks in the United States were suspended after President Donald Trump raised tariffs on Chinese goods amid a trade war, said a person with direct knowledge.
According to the report, Tesla was ready to move ahead with the plan when Trump first increased the tariffs on China to 34%, but the automaker is suspending the specific sourcing plans after the most recent increases:
Tesla was ready to absorb the additional costs when Trump imposed the 34% tariff on Chinese goods but could not do so when the tariff went beyond that, leaving shipping plans suspended, said the person, who declined to be named as the matter is private.
Trump raised the tariffs on China to 145% last week, with some expectations announced on Friday — even though Trump later claimed there were no exceptions.
I would take the report with a grain of salt since it is based on a single source, but it certainly makes sense.
The phrase “Trump’s tariffs have disrupted” could be followed by the name of virtually every major manufacturing company globally, and Tesla is no exception.
Due to Tesla’s vertical integration, Tesla shareholders have been claiming that the tariffs would be positive for Tesla, or at least not as bad as they would be for other automakers.
Tesla indeed has impressive vertical integration for the auto industry, but that’s in relative terms. Effectively, Tesla still uses a significant number of parts from other countries, especially Mexico, but also from China.
Mexico would be the most problematic for Tesla, as roughly 25% of the parts of all its vehicle programs built in the US originate from there.
The tariffs on auto parts from Canada and Mexico are currently paused for everything in the USMCA agreement, but Trump signaled that this is only temporary.
As for the tariffs on China, they primarily affect Tesla’s energy business, which relies on cheap Chinese battery cells, but Tesla also imports some Chinese parts for its cars and 145% tariffs will change that.
Tesla, like many other companies, has to start looking for alternatives.
Many of the problems come not only from the excessively high tariffs Trump is imposing on countries, but also from the fact that he keeps changing his mind and making exceptions, making it hard for companies to plan.
In this case, Tesla might have suspended plans with Chinese suppliers only to wait and see if Trump will back off the Chinese tariffs, if Musk can lobby for an exception with the President, whom he helped elect with $250 million in political donations, to shop for suppliers from other countries, or maybe, just maybe, do what Trumps claims his tariffs will do and manufacture those parts in the US.
For some reason, I have doubts about it being the last one, but you never know.
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It only happens every three years, but it’s spectacular! I’m speaking of course, about bauma – one of the largest trade shows of any kind where heavy equipment manufacturers serving construction, forestry, mining, and more bring out their latest and greatest new job site innovations, and we’ve got a whole bunch of them here, on this special bauma edition of Quick Charge!
With more than two million square feet indoors and twice that outdoors, bauma hosts more than 600,000 guests from 200 countries to see 3,600 exhibitors’ hardware (and, increasingly, software). We’re only going to cover a sliver, but it’s a really cool sliver, you guys – enjoy!
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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