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Renewable Generation Set to Surge in 2016

Wind, solar installations expected to drive growth


Wind, solar installations expected to drive growth.

Solar panel and wind turbine

Electricity produced from renewable sources is expected to grow by 9% in 2016, according to new data from the EIA. The Short-Term Energy Outlook projects that utility-scale renewables will contribute 14% of the energy used in the U.S. in 2016, with wind accounting for 5.2% and solar at 0.8%. The growth will stem from increased generation from hydroelectric sources as well as new solar and wind installations.

The EIA report notes that while government policies are crucial to the continued expansion of renewables, the extension of federal tax credits from the Consolidated Appropriations Act won’t have a major effect on renewable generation this year because so much of the new capacity is already in development. Other renewable power sources are not anticipated to have as dramatic of a year: geothermal is projected for only a 4% increase, biomass will stay flat, and hydropower will grow 5% mostly due to the effects of El Nino.