The Energy Information Administration reports that 20.2 GW of electricity generation capacity came online in the U.S. in the first half of 2024, with solar leading the way and energy storage also seeing significant additions. Fossil fuel retirements exceeded new fossil fuel additions by more than ten times.
According to the U.S. Department of Energy’s Energy Information Administration (EIA), 20.2 GWac of utility-scale power plants will be added to the grid in the U.S. in the first half of 2024. This capacity includes 12 GW from solar, which accounts for 59% of the total additions. In addition, 4.2 GW of this new capacity will be energy storage.
Florida and Texas led the nation in utility-scale solar development, contributing 38% of new solar capacity. Notable projects include 690 MW Gemini Solar plant in Nevadawhich integrates solar power and storage, and the 653 MW Lumina Solar Project in Texas.
Energy storage was the second most important technology, with a total capacity of 4.2 GW. California led the way with 37% of total energy storage capacity, followed by Texas (21%), Arizona (19%) and Nevada (13%). Together, these states accounted for 90% of the energy storage capacity added, with the 380 MW battery at the Gemini facility being the largest of the period.
Fossil fuel retirements far exceeded fossil capacity additions. The EIA found that 5.1 GW of capacity was retired, of which 53% was methane (2.7 GW) and 41% was coal (2 GW). In contrast, only 0.4 GW of new gas capacity came online.
The US energy sector’s growth trend is expected to continue. For the second half of the year, the EIA forecasts an additional 42.6 GW of new capacity, including 25 GW from solar and an additional 10.8 GW from energy storage. Combined with the 12 and 4 GW of capacity in the first half, respectively, the country could end 2024 with 37 GW of new utility-scale solar and 15 GW of new energy storage.
Is 37 GW real or a mirage?
Whether we can actually achieve the predicted record solar capacity depends on policy. The country is currently debating the imposition of new AD/CVD tariffs, which, if implemented at the level proposed by the petitioners, would lead to The USA pays three times the international price for solar modules. Historically Similar AD/CVD tariffs resulted in delays and cancellations of about 20% of utility-scale solar power capacity in 2022..
Solar industry analyst Roth MKM has suggested that developers are proceeding cautiously and may postpone some projects from 2024 to 2025 due to these tariff risks. Just last week US module manufacturers have filed a petition with the US Department of Commerce demanding critical retroactive tariffs.
By 2023, the United States will add just over 18 GW of utility-scale solar power.said the EIA. Taking into account all capacities, from residential to utility capacity, Wood Mackenzie revised its capacity estimates significantly upwards to just over 40 GWdc solar power installed in 2023. In early 2024, the EIA forecast about 36 GWac of new utility-scale solar capacity. Together with the small-scale solar projections of various groups, It has been estimated that nearly 53 GWdc of new solar capacity could be installed in the United States by 2024.The EIA noted that if the current pace continues, 37 GW of utility-scale solar will be installed by 2024, more than double last year’s record capacity.
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