Post: EIA trims 2023 renewable power outlook

EIA trims 2023 renewable power outlook

According to the US Energy Information Administration (EIA), the growth rate of renewable energy in the US will be slightly lower than previously anticipated this year, partly due to the reduced cost of natural gas-fired generation.

In its latest Short-Term Energy Outlook, published on May 9, the EIA predicts that the share of US electricity from renewables will grow this year at a slightly slower rate than previously expected, partly because of lower costs for natural gas-fired generation. It estimates that renewable resources will make up 23% of US generation in 2023 and 26% in 2024, up from 22% in 2022

Natural gas-fired generation is expected to increase to 40% of the overall US mix this year, up from 39% last year, but will decline to 38% next year due to higher fuel costs and the increased availability of renewables.

Source: EIA

Total US energy-related carbon dioxide (CO2) emissions are expected to decrease by 3% in 2023 and then remain flat in 2024. The largest changes in CO2 emissions are from coal, which declines by 12% in 2023 due to less coal-fired electricity generation. Emissions from natural gas fall slightly in both 2023 and 2024. Most 2023 reductions occur because of reduced space heating demand from residential and commercial buildings as a result of milder temperatures in 1Q23. Most 2024 reductions result from less natural gas-fired generation as the amount of generation from renewable sources grows.