News
March 3, 2025

Solar and Batteries to Drive U.S. Power Plant Construction in 2025

Caroline Raffetto

The U.S. is on track to build a record-breaking 63 gigawatts of new power capacity in 2025, as demand for energy surges. Almost all of this new capacity will come from carbon-free sources, continuing the trend of clean energy dominance in U.S. power plant construction.

The latest estimates from the federal Energy Information Administration (EIA) indicate that clean energy sources will make up a staggering 93% of all new power plant capacity added to the U.S. grid this year. As the demand for electricity rises, driven by new AI computing centers and domestic manufacturing projects, renewable energy sources such as solar and batteries are set to lead the charge.

This surge in clean energy construction follows a similar trend from last year, when carbon-free energy sources accounted for nearly all new capacity additions. The push for clean energy has been building for years, and 2025 is shaping up to be another significant milestone in this ongoing transition.

Solar, batteries to lead US power plant ...

Solar and Batteries Lead the Way

Utility-scale solar is expected to continue its strong performance, making up the largest share of new electricity generation this year. More than half of all new power plant capacity in 2025 will come from solar. Batteries will follow closely, contributing 29% of the new capacity—an increase from last year. While solar’s overall share of new capacity may slightly dip, the EIA anticipates more solar construction in absolute terms, with 32.5 gigawatts forecast for this year compared to 30 gigawatts last year.

Wind energy will contribute 12% of new capacity, bolstered by two major offshore wind projects that are still expected to come online despite political challenges. These projects include Massachusetts’ 800-megawatt Vineyard Wind 1 and Rhode Island’s 715-megawatt Revolution Wind. Though the Trump administration had halted federal permitting for new offshore wind projects, these two projects and three others had already secured necessary permits before the suspension.

Natural Gas Faces Decline

In stark contrast to the clean energy surge, natural gas will only account for 7% of the new capacity in 2025. While natural gas still leads the U.S. electricity generation mix—accounting for about 42%—it has entered a prolonged slump in terms of new construction. The EIA predicts that total gas-fired generation will decrease by 3% this year, while solar generation is expected to rise by more than one-third.

The rise of clean energy sources such as solar and batteries reflects a broader shift in the power industry toward more sustainable, cost-effective energy solutions. This shift not only benefits the environment but is also crucial to meeting the increasing electricity needs of the U.S. economy. Data centers, AI hubs, and the growing domestic manufacturing sector, which expanded under the Biden administration, all require more electricity. Renewables and batteries provide the quickest and most cost-effective solution to meet this rising demand, although they will still need to complement other resources to ensure reliable, 24/7 service.

The Future of U.S. Energy

This snapshot of U.S. power plant construction highlights the ongoing transformation of the nation’s energy landscape. As clean energy technologies continue to dominate the market, they offer a glimpse into a future where electricity generation is not only greener but also more responsive to the demands of a rapidly evolving economy. Solar, wind, and batteries are poised to play an even bigger role in meeting the nation's power needs, providing clean, reliable, and affordable energy for years to come.

Originally reported by Julian Spector in Canary Media.

News
March 3, 2025

Solar and Batteries to Drive U.S. Power Plant Construction in 2025

Caroline Raffetto
New Project
United States

The U.S. is on track to build a record-breaking 63 gigawatts of new power capacity in 2025, as demand for energy surges. Almost all of this new capacity will come from carbon-free sources, continuing the trend of clean energy dominance in U.S. power plant construction.

The latest estimates from the federal Energy Information Administration (EIA) indicate that clean energy sources will make up a staggering 93% of all new power plant capacity added to the U.S. grid this year. As the demand for electricity rises, driven by new AI computing centers and domestic manufacturing projects, renewable energy sources such as solar and batteries are set to lead the charge.

This surge in clean energy construction follows a similar trend from last year, when carbon-free energy sources accounted for nearly all new capacity additions. The push for clean energy has been building for years, and 2025 is shaping up to be another significant milestone in this ongoing transition.

Solar, batteries to lead US power plant ...

Solar and Batteries Lead the Way

Utility-scale solar is expected to continue its strong performance, making up the largest share of new electricity generation this year. More than half of all new power plant capacity in 2025 will come from solar. Batteries will follow closely, contributing 29% of the new capacity—an increase from last year. While solar’s overall share of new capacity may slightly dip, the EIA anticipates more solar construction in absolute terms, with 32.5 gigawatts forecast for this year compared to 30 gigawatts last year.

Wind energy will contribute 12% of new capacity, bolstered by two major offshore wind projects that are still expected to come online despite political challenges. These projects include Massachusetts’ 800-megawatt Vineyard Wind 1 and Rhode Island’s 715-megawatt Revolution Wind. Though the Trump administration had halted federal permitting for new offshore wind projects, these two projects and three others had already secured necessary permits before the suspension.

Natural Gas Faces Decline

In stark contrast to the clean energy surge, natural gas will only account for 7% of the new capacity in 2025. While natural gas still leads the U.S. electricity generation mix—accounting for about 42%—it has entered a prolonged slump in terms of new construction. The EIA predicts that total gas-fired generation will decrease by 3% this year, while solar generation is expected to rise by more than one-third.

The rise of clean energy sources such as solar and batteries reflects a broader shift in the power industry toward more sustainable, cost-effective energy solutions. This shift not only benefits the environment but is also crucial to meeting the increasing electricity needs of the U.S. economy. Data centers, AI hubs, and the growing domestic manufacturing sector, which expanded under the Biden administration, all require more electricity. Renewables and batteries provide the quickest and most cost-effective solution to meet this rising demand, although they will still need to complement other resources to ensure reliable, 24/7 service.

The Future of U.S. Energy

This snapshot of U.S. power plant construction highlights the ongoing transformation of the nation’s energy landscape. As clean energy technologies continue to dominate the market, they offer a glimpse into a future where electricity generation is not only greener but also more responsive to the demands of a rapidly evolving economy. Solar, wind, and batteries are poised to play an even bigger role in meeting the nation's power needs, providing clean, reliable, and affordable energy for years to come.

Originally reported by Julian Spector in Canary Media.