Winds Are Shifting in U.S. Power Generation Market
We expect natural gas and renewable energy, particularly solar and wind, to battle for the top spot.
Charles Fishman: Coal and natural gas have been fighting for the top spot in the U.S. generation market for the last 20 years. In 2016, gas generation topped coal for the first time. Gas is the new king, with 35% market share. Now the battlefield is shifting, and in the next decade we expect natural gas and renewable energy, particularly solar and wind, to slug it out.
Renewable energy has been growing at extraordinary rates but still has just 10% market share. By 2030, we forecast renewable energy to produce 22% of U.S. electricity generation, surpassing coal, nuclear, and hydro as the second-largest source of power generation in the U.S. We think gas will also be a winner because of its flexibility to support intermittent wind and solar, extending its market share lead to 41% over the next decade.
Charles Fishman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.