In response to China, the US is accelerating its energy transition

With a spectacular increase in their capacity to produce green electricity, Uncle Sam seems determined not to let the Middle Kingdom alone dictate the pace of the global energy transition. In a rather tense geopolitical context, this race between the US and China is taking a new turn.

In the first half of 2024, the US launched a massive offensive in renewable energy, which explicitly signalled their intention to catch up with their Asian rival.

A quantum leap in green energy production

The United States Energy Information Administration (EIA) has just revealed telling numbers: During the first six months of 2024, the US grid was enriched with 20.2 gigawatts (GW) of new large-scale generation capacity. To give an idea, a medium-sized country like Switzerland consumes about 20 GW in a whole day. This increase of 21% compared to the same period the previous year clearly shows that the country is in the middle of an acceleration phase.

Solar takes the lion’s share of this expansion, representing 59% of new installations with 12 GW in use. Texas and Florida stand out in particular, accounting for 38% of the national solar inputs alone. Flagship projects such as the Gemini plant in Nevada, which combines 690 megawatts (MW) of solar and storage capacity, perfectly illustrates the American ambition to compete with Chinese mega-installations.

A Multidimensional Strategy to Counter Chinese Advances

Aware that China currently dominates the battery market, the US is also intensifying its efforts in this more than strategic area. Battery storage contributed 21% (4.2 GW) of the new capacitywith a notable concentration in California, Texas, Arizona and Nevada.

Wind power is not left out, adding 2.5 GW to the US energy mix. Texas confirms its spearhead role with the inauguration of the Canyon Wind (309 MW) and Goodnight (266 MW) wind farms. In the nuclear field, the commissioning of unit 4 of the Vogtle power plant in Georgia (1,114 MW) marks an important milestone, making this installation the largest nuclear complex in the country.

This comprehensive offensive is accompanied by a strategic slowdown in the closure of conventional power plants. Only 5.1 GW of capacity was withdrawn in the first half of 2024, compared to 9.2 GW the year beforemainly natural gas and coal-fired plants.

The outlook for the second half of 2024 is equally ambitious, with an additional 42.6 GW planned, including nearly 60% in solar. If these projections come true, 2024 could set a new record with 37 GW of solar capacity added in a single year, nearly double 2023.

This meteoric acceleration of the US energy transition leaves no doubt about Washington’s resolve not to leave the field open to Beijing in this strategic sector. Apart from environmental issues, it is good a battle for technological and economic supremacy is being played out. While China has a significant lead in the production of solar panels and batteries, the United States seems to have found a new life, determined to catch up and regain control in the race for clean energy.

The US massively increased its renewable energy generation capacity in the first half of 2024, with 20.2 GW added, 59% of which was solar.
The country is diversifying its efforts by also investing in battery storage, wind and nuclear power to catch up with China’s lead.
This acceleration reflects the American determination to compete with China in the race for clean energy.