For the first time in history, wind and solar sources generated more electricity than coal in the United States for the first five months of 2023, according to federal data. This milestone reflects the ongoing transformation of the U.S. power sector as the nation races to install cleaner forms of energy to reduce greenhouse gas emissions from fossil fuels.
Coal’s decline was driven by a combination of factors, including low natural gas prices, a mild winter, a wave of coal plant retirements and a drop in electricity demand due to the coronavirus pandemic. “From a coal perspective, it has been a disaster,” said Andy Blumenfeld, an analyst who tracks the industry at McCloskey by OPIS. “The decline is happening faster than anyone anticipated.”
Renewable energy is expected to provide 24 percent of the U.S. power generation in 2023, surpassing both coal and nuclear power, according to the Energy Information Administration (EIA).
“The outbreak has put all the pressures facing the coal industry on steroids,” said Jim Thompson, a coal analyst at IHS Markit.
The shift to renewables has been accelerated by smart government policy, such as the Inflation Reduction Act (IRA), which provides additional tax credits to incentivize new clean investments in coal-dependent communities, offering new employment and tax revenue opportunities. “The IRA will help us get to net-zero emissions by 2050 by accelerating the transition from fossil fuels to clean energy,” said Senator Tina Smith, one of the bill’s sponsors.
Some countries are also moving away from coal and embracing renewables, such as Vietnam, which has released a long-anticipated energy plan meant to take the country through the next decade and help meet soaring demand while reducing carbon emissions. However, fossil fuels still account for more than half of its power mix by 2030.
“Vietnam’s power sector is at a turning point,” said Nguy Thi Khanh, executive director of Green Innovation and Development Centre (GreenID), a Vietnamese non-governmental organization promoting sustainable energy development.
Renewable energy advocates say that the trend toward wind and solar is irreversible and that it will bring significant benefits for the environment, public health and economic development. “Renewable energy is becoming cheaper than ever before,” said EIA Administrator Linda Capuano. “We expect that to continue over the next two years as renewable capacity additions are poised to smash records.”
Relevant articles:
–In a First, Wind and Solar Generated More Power Than Coal in U.S., Scientific American, June 12, 2023
–Higher renewable energy generation to cut coal reliance this summer, says EIA, Reuters, June 8, 2023
–Long-awaited Vietnam energy plan aims to boost renewables, but fossil fuels still in the mix, Newsday, June 14, 2023
–Comparing the cost of legacy coal to new, clean energy, Forbes, January 30, 2023