Solar Represents 35 Percent of U.S. Utility-Scale Power Generating Capacity Added in First Half of 2023: EIA

During the first half of 2023, developers added 16.8 gigawatts of new electricity generating capacity to the U.S. electricity grid, according to an Aug. 8 report from the U.S. Energy Information Administration. Solar power represented the largest share of the new power generating capacity at 35 percent. Natural gas-fired generating capacity represented 34 percent and wind capacity made up 19 percent of capacity additions while battery storage accounted for 11 percent.

Solar power accounted for 5.9 GW of the capacity, which is about 4.6 GW less than what developers and project planners expected to add for that period at the beginning of this year. The agency attributed the shortfall to supply chain constraints. U.S. solar capacity has risen significantly since 2010, with the exemption of 2022 when solar additions fell by 23 percent year on year in 2022 due to supply chain interruptions and other COVID-19 associated challenges, according to the EIA. The increase in solar capacity was prominent in the state of Florida, with the largest power utility in the state, Florida Power and Light adding almost 80 percent of solar capacity increased in the state.

The increase in natural gas fired capacity was driven by two large projects coming online, the Guernsey Power Station in Ohio and CPV Three Rivers Energy Center in Illinois.

About 8.2 GW of power generating capacity was retired during the first half of the year, accounting for 54 percent of the total forecasted to retire during 2023. Coal fired power stations are expected to account for 64 percent of the retirements, followed by natural gas (30 percent).

As it stands, developers intend to add an additional 35.2 GW of power generating capability in the second half of the year. Majority of the planned capacity is projected to be from solar (19.3 GW), followed by battery storage (7.8 GW) and wind (4.9 GW).