In the United States, electricity derived from coal has decreased over the past two decades, with the annual output declining by almost 63 percent between 2010 and 2023. In contrast, there has been a rise in natural gas and renewable sources within the energy mix. How is electricity generated in the U.S.? Most electricity in the U.S. is generated from steam turbines, which can be powered by fossil and nuclear fuels, biomass, geothermal, and solar thermal energy. Other systems such as gas turbines, hydro turbines, wind turbines, and solar photovoltaics are also major generation technologies. Electric utilities in the U.S. generated more than 2,176 terawatt hours in 2023, accounting for just over half of the power output in the country that year. Growing renewable capacity Renewable sources have become more prominent in the U.S. in recent years, particularly wind, hydro, and solar energy. The former has overtaken conventional hydropower, becoming the leading renewable energy source in the U.S. since 2019. Wind and solar power have also accounted for the largest share of electricity capacity additions in the country.

Throughout the past decade, the United States has been notably decreasing its use of coal, and increasing the use of natural gas and renewable energy sources for electricity generation. In 2023, natural gas was by far the largest source of electricity in the North American country, with a generation share of 43 percent. Renewable energy's share amounted to 23 percent that year.

Petroleum is the primary source of energy in the United States, with a consumption of 35.43 quadrillion British thermal units in 2023. Closely following, the U.S. had 33.61 quadrillion British thermal units of energy derived from natural gas. Energy consumption by sector in the United States Petroleum is predominantly utilized as a fuel in the transportation sector, which is also the second-largest consumer of energy in the U.S. with almost 30 percent of the country’s total energy consumption in 2023. This figure is topped only by the energy-guzzling industrial sector, a major consumer of fossil fuels such as petroleum and natural gas. Renewable energy in the United States Despite the prevalence of fossil fuels in the U.S. energy mix, the use of renewable energy consumption has grown immensely in the last decades to approximately 11 exajoules in 2023. Most of the renewable energy produced in the U.S. is derived from biomass, hydro and wind sources. In 2023, renewable electricity accounted for approximately 22.5 percent of the nation’s total electricity generation.

The United States generated 4,178 terawatt-hours of electricity in 2023, one of the largest figures recorded in the indicated period. In comparison to the previous year, power generation decreased by 50 terawatt-hours. U.S. electricity market and the role of renewables Unlike the use of fossil fuels, U.S. renewable electricity generation has increased in recent years, amounting to more than 890 terawatt-hours in 2023. Wind power has become the main renewable source of electricity generation in the North American country, having surpassed conventional hydroelectric power in 2019. Who are the main consumers of electricity? The residential sector was ranked as the largest consumer of electricity in the United States in 2022. Electricity retail sales to residential users have grown by approximately 300 terawatt-hours since the beginning of the century.

The electricity generation capacity in the United States reached 1.2 terawatts in 2022, a rise of 60 percent compared to the value recorded in 2000. Power capacity in the U.S. is forecast to continue growing in the next decades, doubling between 2022 and 2050. Electricity sources in the U.S. In 2023, fossil fuels were still the main source of electricity generation in the country. Natural gas surpassed coal as the single leading power source in 2016 and accounted for over 40 percent of the electricity produced in the U.S. in 2023. However, renewable electricity generation has been growing, primarily driven by wind energy and hydropower. Capacity additions and retirements in the U.S. As of 2024, solar and wind power accounted for about 70 percent of planned capacity additions in the North American country. By comparison, fossil fuels had the most planned capacity retirements in the U.S.. Natural gas was the only fossil fuel with planned capacity additions that year, amounting to 2.5 gigawatts.

Coal power plants generated 2,013 terawatt-hours (TWh) of electricity in the United States in 2005. In that year, it was projected by the EIA (Energy Information Administration) that coal power generation would increase to 2,494 TWh by 2020. Due to environmental policies, the natural gas boom, and the rapid growth of renewable energy sources, coal power generation in the U.S. actually dropped to 774 TWh in 2020. The projected growth in coal electric power meant that U.S. power sector emissions were expected to rise to three billion metric tons of CO2 by 2020. However, electricity-related emissions that year fell 40 percent from 2005 levels to 1.4 billion metric tons. This was 52 percent lower than the assumed emissions.

Fossil fuels remain the greatest source of electricity generation worldwide. In 2023, coal accounted for roughly 35.5 percent of the global power mix, while natural gas followed with a 23 percent share. China, India, and the United States accounted for the largest share of coal used for electricity generation. The future of renewable energy Fossil fuel use notwithstanding, the share of renewables in global electricity has seen a more pronounced year-on-year growth in recent years, following increased efforts by governments to combat global warming and a decrease in levelized costs. Projections indicate that renewables will surpass fossil fuels as the main power source by 2040. Electricity consumption in the world China is the largest electricity consumer in the world, requiring more than 8,000 terawatt-hours of electricity every year. However, this economic power accounts for the largest population in the world and its electricity consumption per capita is almost tenfold smaller than the consumption of Iceland, although the power used in this country came almost completely from clean sources.

As of 2021, the leading energy source for electricity generation in the United States was fossil fuels, namely natural gas. Natural gas accounted for 38 percent of electricity generation of the country, and coal accounted for 22 percent that year. In comparison, nuclear power accounted for 19 percent of electricity production and renewables for approximately 15 percent.

In a typical week of March 2023 in the United States, natural gas accounted for almost 176 gigawatt-hours of electricity production. Natural gas is the leading source of electricity in the country. While the production of electricity from natural gas, other fossil fuels, and renewable energy sources varied between hours of peak and low demand, nuclear power production was steady throughout the day. The pattern of electricity generation is seasonal, following the electricity demand of the country.

In the United States, new offshore wind power-generating sites entering the grid in 2028 had estimated capital costs of 89.61 U.S. dollars per megawatt-hour, as of 2022 calculations. Advanced nuclear plants had an estimated cost of 62.17 dollars per megawatt-hour. The more difficult the initial construction of a power plant, the higher the associated capital costs.

What are levelized capital costs?

The levelized cost of energy (or LCOE) is a comparative indication of the financial viability of different forms of energy over a system’s lifetime. Capital costs are the one-time expenses of acquiring the land, equipment, and construction resources to start a project. A decrease in the cost of renewable energy technologies over the past decades was an important factor in the rapid expansion of these technologies. For example, the cost of solar PV electricity worldwide declined by more than 88 percent between 2010 and 2021.

Harvesting wind from the sea

Despite the higher capital costs of building wind turbines in bodies of water, the high economic potential for fixed-bottom and floating offshore wind technologies is nevertheless predicted off the Atlantic coast, particularly in New England. While U.S. investors and politicians have been relatively skeptical towards the establishment of offshore wind farms in the past, the Biden administration strengthened the offshore wind energy sector. As of 2022, the offshore wind capacity pipeline in the U.S. stood at more than 40 gigawatts.

Electricity consumption in the United States totaled 4,000 terawatt-hours in 2023, one of the highest values in the period under consideration. Figures represent energy end use, which is the sum of retail sales and direct use of electricity by the producing entity. Electricity consumption in the U.S. is expected to continue increasing in the next decades. Which sectors consume the most electricity in the U.S.? Consumption has often been associated with economic growth. Nevertheless, technological improvements in efficiency and new appliance standards have led to a stabilizing of electricity consumption, despite the increased ubiquity of chargeable consumer electronics. Electricity consumption is highest in the residential sector, followed by the commercial sector. Equipment used for space heating and cooling account for some of the largest shares of residential electricity end use. Leading states in electricity use Industrial hub Texas is the leading electricity-consuming U.S. state. In 2022, the Southwestern state, which houses major refinery complexes and is also home to nearly 30 million people, consumed over 470 terawatt-hours. California and Florida trailed in second and third, each with an annual consumption of approximately 250 terawatt-hours.

Since 2019, wind has been the major renewable source in the United States, based on net electricity generation. In 2023, electricity generation from wind amounted to some 425 terawatt hours. By comparison, electricity generation from solar photovoltaic stood at 164.5 terawatt hours.

In 2023, renewable energy sources accounted for about 21 percent of the total electricity generated in the United States. Of that share, wind power accounted for the largest proportion of U.S. electricity generation, at roughly 10 percent. Geothermal, on the other hand, accounted for just 0.4 percent of the electricity generated in the U.S. that year.

Texas is the leading electricity-consuming state in the United States. In 2022, the state consumed roughly 475 terawatt-hours of electricity. California and Florida followed in second and third, each consuming approximately 250 terawatt-hours.

Primary energy consumption in the United States has oscillated since 1998, peaking at 97.4 exajoules in 2007. By 2023, figures had decreased to nearly 94.3 exajoules. Primary energy refers to energy harvested directly from natural resources, before being transformed into electricity or other secondary or tertiary energy forms. It includes both fossil fuels and renewable sources. United States' primary energy demand: global context The U.S. is the second largest primary energy consumer worldwide, only falling behind China. In 2021, China had a primary energy demand of over 157 exajoules. Rounding out the top three, India ranked third and had a total energy consumption of some 35 exajoules, or roughly 38 percent of the U.S.’s consumption. Energy transition in the U.S. Such high energy demand leads to greater carbon emissions. Consequently, 71 percent of U.S. citizens are in favor of speeding up the transition to clean energy sources, such as wind and solar power. Despite the increase in clean energy investments in the U.S., the country’s main energy sources are still fossil fuels. However, the share of renewables in electricity generation has increased to almost 21 percent as of 2021.

Industrial activities are the greatest energy end-user sector in the United States, reaching a consumption of some 31 quadrillion British thermal units in 2023, followed by the transportation sector. The U.S. is the second-largest energy consumer in the world, after China. Energy source in the United States Consumption of fossil fuels still accounts for the majority of U.S. primary energy consumption. The transportation sector and electricity generation are the sectors with the largest fossil fuel consumption in the country, mainly relying on oil-based motor fuels and natural gas, respectively. Electricity generation in the United States Although around 60 percent of the electricity generated in the U.S. is derived from natural gas and coal, the use of renewable sources is becoming more common in electricity production, wind the largest increase in wind and solar power. These two clean energy resources are projected to generate as much power as natural gas by 2030.

In 2023, some 425 terawatt hours of electricity was generated from wind sources in 2023, making this the most used renewable source in the United States. By comparison, electricity generation from conventional hydroelectric power plants stood at almost 240 terawatt hours.

In 2023, renewable sources accounted for 22.7 percent of the electricity generated in the United States. The share of renewables in the country's electricity generation has been continually increasing for nearly a decade. In addition, renewables accounted for over 70 percent of the power capacity additions in the U.S. in 2023. Renewable energy sources in the U.S. Wind power was the leading renewable energy source in the country, accounting for over 10 percent of the total electricity supply in the U.S., followed by hydropower. Renewable energy generation in the U.S. amounted to 894 terawatt-hours in 2023. The growth of renewables in the U.S. According to a recent forecast, the renewable electricity capacity in the U.S. is projected to triple between 2022 and 2040 in a reference scenario, although this figure could be higher in the case of low renewable cost. In 2023, onshore wind and solar photovoltaic energy had some of the lowest levelized cost of electricity in the country.

Renewable energies were the leading source of electricity production in Washington state in 2021, with hydropower alone accounting for almost two thirds of the power generated. Natural gas ranked second, but by a wide margin, representing some 14.4 percent of Washington's electricity generation that year.

Coal consumption within the electric power sector in the United States fell to 387.17 million short tons in 2023. In the past decade, there has been a marked decline in the use of coal for electricity generation. Coal consumption peaked between 2005 and 2008, when over one billion short tons were used every year. However, with the promotion of natural gas as a bridge-fuel toward a greener power sector, coal as the dirtiest of fossil fuels has fallen out of favor and natural gas has succeeded coal in becoming the main fuel type used for electricity generation in the U.S. Coal use by sector Coal is used primarily by the power sector. An Edison plant built for New York City in 1882 was the first coal-fired electricity plant in the U.S. By the 1950s, coal was considered the leading source of fuel for electricity generation. Declines in coal usage occurred around 2007, amidst the increased availability of renewables and natural gas. Apart from the use of thermal coal for power production, coking coal is an important raw material used for steelmaking, and the industrial sector still consumes around one quadrillion British thermal unit every year. Coal power use around the world The U.S.is the third largest consumer of coal in the world, following China and India. China’s consumption exceeds the total of many other countries combined, reaching 86.17 exajoules to U.S.' 10.57 exajoules. Fossil fuels are still a primary source of fuel around the world. U.S. fossil fuel consumption reached some 79.05 quadrillion British thermal units in 2022.