EIA Expects Solar to Grow to 22% of U.S. Power Generation in 2024, 24% in 2025 -- OPIS

The U.S. Energy Information Administration (EIA) anticipates electricity generation growth of around 3% this year and 1% in 2025, the agency said in its Short-Term Energy Outlook (STEO) report for May, released Tuesday.

And EIA expects renewables to supply most of that growth -- with solar leading the way.

Electricity produced by solar, wind and hydropower resources accounted for 21% of the power generation in the U.S. last year. EIA expects those resources to account for 22% of that figure in 2024 and 24% in 2025.

Solar alone will provide 41% more electricity this year compared to last, according to EIA. Wind is up 5% this year in the agency's forecast for May, but that could change if wind speed expectations don't come to pass, EIA said.

Hydropower generation is also expected to increase this year -- by 6% -- with the Southeast driving the most significant growth.

Solar's expected boom could mean a new pack leader for renewable energy resources in the U.S., according to the agency.

"In 2025, we expect generation from solar to exceed the contribution from hydroelectricity for the first year in history," EIA Administrator Joe DeCarolis said in a release.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Colt Shaw, [e-mail] ; Editing by Jordan Godwin, [e-mail]

(END) Dow Jones Newswires

05-07-24 1449ET