Solar, battery storage to dominate new electricity generation in 2024: EIA

Solar and battery storage will make up a vast majority of new utility-scale electric-generating capacity projects expected this year, according to the latest US Energy Information Administration data.

Developers and power plant owners plan to add 62.8 GW of capacity in 2024, the EIA said in a Feb. 15 report. This projection represents a 55% increase in added capacity compared to 2023, which saw 40.4 GW added, the most since 2003, according to the EIA.

81% of the new capacity will be made up by solar and battery storage projects, according to the data. The breakdown is as follows

EIA called the projected solar additions a record, saying projected additions in 2024 would nearly double last year's gains at 18.4 GW.

Battery storage is also set to set a record for annual capacity additions. Total battery storage in the US is expected to nearly double, to the existing 15.5 GW.

Wind capacity additions have slowed in the past two years, according to EIA data. The expected addition of 8.2 GW is a decrease from the over 14 GW added in both 2020 and 2021.

Natural gas capacity additions are at a 25-year low in 2024, the EIA said.

Finally, the added nuclear capacity originates from the fourth reactor at Georgia's Vogtle nuclear power plant.

Leading states

Texas and California are expected to see the highest number of new projects this year. 35% and 10% of new solar projects are slated in Texas and California, respectively.

The two states will also be the main drivers of battery storage growth, making up a combined 82% of new capacity this year, or 6.4 GW in Texas and 5.2 GW in California.

The states are the top two in operating battery storage capacity, with California at 8.3 GW and Texas at 5.1 GW, as of fourth quarter 2023, according to government filings and company announcements that S&P Global compiled.