EIA Lowers U.S. Wind, Solar Projections for 2020 Amid COVID-19 Economic Slowdown

The U.S. electric power sector will add 19.4 gigawatts of wind capacity and 12.6 gigawatts of utility-scale solar capacity in 2020, according to the Energy Information Administration’s Short-Term Energy Outlook issued on April 7. These annual wind and solar capacity additions are 5 percent and 10 percent lower, respectively, compared to the previous report. Renewable energy is projected be the fastest growing generation source this year, but the effects of COVID-19 pandemic and the resulting economic slowdown are likely to impact new capacity additions over the next few months.

The agency forecasts that U.S. electric power sector generation will decline by 3 percent in 2020. Power sector projections show that:

• Renewable energy sources account for the largest proportion of new generating capacity in 2020, growing by 11 percent.
• Generation from coal-fired power plants is expected to drop by 20 percent from 2019, while natural gas power will increase by 1 percent.
• Total coal consumption will decrease by 19 percent in 2020, driven primarily by electric power sector demand, which will fall by 20 percent 2020.
• Energy-related carbon dioxide emissions will decrease by 7.5 percent in 2020 as the result of the slowing economy and restrictions on business and travel activity related to COVID-19.
• In 2021, emissions will increase by 3.6 percent; energy-related emissions are sensitive to changes in weather, economic growth, energy prices, and fuel mix.