Solar panels and batteries will account for more than 80 percent of new power capacity installed in the U.S. this year, officials say. Both technologies are set for record growth, helping to hasten the decline of coal power.
Solar alone will account for more than half of new power capacity, according to the latest forecast from the U.S. Energy Information Administration. Most of the new solar projects will go up in Texas and California.
By contrast, wind power will add up to just 12 percent of new capacity this year. Facing soaring costs, lengthy permitting, and public backlash against new projects, wind energy isn’t growing at the same pace as solar. Further complicating matters, the Trump administration has already thrown up roadblocks to building new wind farms on federal lands and waters, and it may roll back tax incentives for the industry, a move that would further stifle wind power, analysts say.
Still, as renewables grow, coal withers. The U.S. will retire twice as much coal power this year as it did last year, shuttering roughly 5 percent of its fleet, officials estimate. Analysts credit the rapid buildout of solar and batteries for edging coal off the power grid.
Not only are older coal plants going offline, but the remaining coal plants are generating less power. With a lower output, plants may struggle to cover the fixed costs of operating, leading to higher prices for coal power, say analysts at the Institute for Energy Economics and Financial Analysis.
“Coal may retain a grip in U.S. politics, but its actual role in the generation system is shrinking annually,” they say. “It is a trend we believe is irreversible.”
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