Today, the US Energy Information Administration (EIA) released its January Short-Term Energy Outlook—including the first forecasts for 2025
In it, they expect clean energy to make up a record 45% of electricity due to continued growth of solar/wind and a rapid decline in coal🧵
In addition to the continued rise of wind and solar, the EIA projects that we'll see a massive deployment of grid battery storage capacity—which is expected to triple by 2025. Most of this battery storage capacity is going to be built in the renewables-heavy grids of CA and TX
The EIA is also projecting that US crude oil production will hit new record highs in 2025, though they expect a substantial slowdown in production growth compared to the last two years.
Finally, the EIA is projecting continued rapid growth in US natural gas exports—especially the liquefied natural gas (LNG) that the US has mostly been sending to Europe in the wake of Russia's invasion of Ukraine.
Thanks for making it to the end of the thread—if you want to read more on energy data, consider checking out the piece I wrote last month on how the combination of domestic decarbonization and rising oil & gas production is driving a US energy export boom!
www.apricitas.io/p/americas-e...
This is why Russia's attempts to conquer Ukraine have done nothing but speed up its own collapse. Between Biden's LNG lifeline, increasing reliance on domestic energy sources, and more efficient appliances, Europe is no longer dependent on Russia for anything anymore.
Oh, indeed! I just don't know enough about pricing arbitrage to know if these would also prompt storage in the SPP area or if proximity to locations that see price spikes and constrained grid is what is critical for pencilling out yet
The nice thing about the US is it's nodal market really helps address the siting problem of battery storage systems.
I.e. you can take the past years of price fluctuations at a node and evaluate a battery's performance there (or add some RE growth to help) but that's why we see growth in TX/Ca
