Electricity consumption is rising, driving solar, storage expansion: EIA

Diana DiGangi | Source: Utility DIVE | Posted 05/14/2025

Keyword Tags:

Battery storage capacity additions through 2026 are expected to outpace wind, small-scale solar and natural gas, according to the Energy Information Administration.

AI generated summary

The Energy Information Administration (EIA) projects that U.S. electricity consumption will continue to rise, surpassing previous highs in 2025 and 2026. This increase is expected to drive significant expansions in generating capacity, primarily through utility-scale solar and battery storage. The EIA forecasts that utility-scale solar will add approximately 135 GW from 2020 to 2026, leading to a 34% increase in generation in 2025 and an 18% increase in 2026. Battery storage is anticipated to contribute around 57.5 GW, outpacing wind and natural gas additions.

Texas is set to lead in battery storage projects, with nearly 20 GW of capacity expected to come online soon, enhancing reliability and cost-effectiveness in the state's energy market. The EIA emphasizes that solar and battery storage will account for 81% of total capacity additions, with solar alone contributing over 50%. The U.S. energy storage sector plans to invest $100 billion in domestic battery manufacturing over the next five years, contingent on favorable policy conditions. However, proposed changes to tax credits for battery technologies could affect future deployment efforts.

Link to Original Article

Please find the link to the full article below. (Please note that content provider might require a paid subscription)

Source Link: https://www.utilitydive.com/news/electricity-demand-solar-storage-expansion-battery-energy/748001/

Create a free trial account: Sign Up

Grid monitor is free to try. No credit card required

Electricity consumption is rising, driving solar, storage expansion: EIA

AI generated summary

Link to Original Article

Create a free trial account: Sign Up

Already have an account? Login