Energy
2024 U.S. Clean Electricity Outlook
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2024 U.S. Clean Electricity Outlook
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As the world seeks sustainable energy solutions, the U.S. has the opportunity to lead the charge in the global shift toward clean electricity.
But what kind of progress can the country expect in the upcoming year?
To find out, we partnered with the National Public Utilities Council to visualize the projected 2024 electricity generation capacity of clean energy technologies in the U.S., using data from the U.S. Energy Information Administration (EIA).
The Rise of Battery Storage and Solar Power
Looking ahead to 2024, U.S. generation capacity projections unveil a promising trajectory for battery storage and solar power. Battery storage is projected to grow by 82% compared to 2023 projections, while solar is projected to grow by 40%.
Growth is also expected for wind power, albeit at a slower rate (5%) due to higher costs and permitting challenges, especially for offshore projects.
| Electricity Generation Capacity Projections | 2023 | 2024 | Change |
|---|---|---|---|
| Battery Storage | 17 GW | 31 GW | +82% |
| Solar | 93 GW | 130 GW | +40% |
| Wind | 149 GW | 156 GW | +5% |
| Nuclear | 96 GW | 97 GW | +1% |
| Geothermal | 3 GW | 3 GW | 0% |
| Hydro | 80 GW | 80 GW | 0% |
As illustrated in the table above, the EIA projects a modest year for the rest of the major clean electricity sources in the nation, with nuclear expected to eke out a lackluster 1% growth, while hydro and geothermal remain unchanged.
Overall, these projections underscore a diversification of the U.S. energy portfolio, with a pronounced emphasis on renewables and energy storage. The growth in battery storage capacity, specifically, underscores efforts to overcome the intermittency challenges of renewables, ultimately ensuring a reliable and emission-free power supply in the country.
The Broader U.S. Power Sector in 2024
Beyond capacity projections, let’s also take a look at some projected trends related to the broader U.S. power sector in 2024.
- U.S. daily electricity generation is projected to grow by 3% between 2023 and 2024, reflecting an increasing demand for power in the country.
- Renewables are set to claim an even larger slice of the U.S. electricity mix in 2024, rising from 22% in 2023 to 24%.
- Electricity production from coal is projected to decline by 9% as the country continues its move away from the emission-intensive energy source.
- Despite the country’s projected growth in clean electricity capacity, total U.S. energy-related emissions are projected to drop by 0.1% in 2024.
All in all, the 2024 landscape of the U.S. power sector signifies progress with increased renewables and heightened electricity generation. However, the marginal dip in emissions emphasizes the need to ramp-up country-wide efforts to meet the goal of a net-zero future.
Energy
Charted: 4 Reasons Why Lithium Could Be the Next Gold Rush
Visual Capitalist has partnered with EnergyX to show why drops in prices and growing demand may make now the right time to invest in lithium.
4 Reasons Why You Should Invest in Lithium
Lithium’s importance in powering EVs makes it a linchpin of the clean energy transition and one of the world’s most precious minerals.
In this graphic, Visual Capitalist partnered with EnergyX to explore why now may be the time to invest in lithium.
1. Lithium Prices Have Dropped
One of the most critical aspects of evaluating an investment is ensuring that the asset’s value is higher than its price would indicate. Lithium is integral to powering EVs, and, prices have fallen fast over the last year:
| Date | LiOH·H₂O* | Li₂CO₃** |
|---|---|---|
| Feb 2023 | $76 | $71 |
| March 2023 | $71 | $61 |
| Apr 2023 | $43 | $33 |
| May 2023 | $43 | $33 |
| June 2023 | $47 | $45 |
| July 2023 | $44 | $40 |
| Aug 2023 | $35 | $35 |
| Sept 2023 | $28 | $27 |
| Oct 2023 | $24 | $23 |
| Nov 2023 | $21 | $21 |
| Dec 2023 | $17 | $16 |
| Jan 2024 | $14 | $15 |
| Feb 2024 | $13 | $14 |
Note: Monthly spot prices were taken as close to the 14th of each month as possible.
*Lithium hydroxide monohydrate MB-LI-0033
**Lithium carbonate MB-LI-0029
2. Lithium-Ion Battery Prices Are Also Falling
The drop in lithium prices is just one reason to invest in the metal. Increasing economies of scale, coupled with low commodity prices, have caused the cost of lithium-ion batteries to drop significantly as well.
In fact, BNEF reports that between 2013 and 2023, the price of a Li-ion battery dropped by 82%.
| Year | Price per KWh |
|---|---|
| 2023 | $139 |
| 2022 | $161 |
| 2021 | $150 |
| 2020 | $160 |
| 2019 | $183 |
| 2018 | $211 |
| 2017 | $258 |
| 2016 | $345 |
| 2015 | $448 |
| 2014 | $692 |
| 2013 | $780 |
3. EV Adoption is Sustainable
One of the best reasons to invest in lithium is that EVs, one of the main drivers behind the demand for lithium, have reached a price point similar to that of traditional vehicle.
According to the Kelly Blue Book, Tesla’s average transaction price dropped by 25% between 2022 and 2023, bringing it in line with many other major manufacturers and showing that EVs are a realistic transport option from a consumer price perspective.
| Manufacturer | September 2022 | September 2023 |
|---|---|---|
| BMW | $69,000 | $72,000 |
| Ford | $54,000 | $56,000 |
| Volkswagon | $54,000 | $56,000 |
| General Motors | $52,000 | $53,000 |
| Tesla | $68,000 | $51,000 |
4. Electricity Demand in Transport is Growing
As EVs become an accessible transport option, there’s an investment opportunity in lithium. But possibly the best reason to invest in lithium is that the IEA reports global demand for the electricity in transport could grow dramatically by 2030:
| Transport Type | 2022 | 2025 | 2030 |
|---|---|---|---|
| Buses 🚌 | 23,000 GWh | 50,000 GWh | 130,000 GWh |
| Cars 🚙 | 65,000 GWh | 200,000 GWh | 570,000 GWh |
| Trucks 🛻 | 4,000 GWh | 15,000 GWh | 94,000 GWh |
| Vans 🚐 | 6,000 GWh | 16,000 GWh | 72,000 GWh |
The Lithium Investment Opportunity
Lithium presents a potentially classic investment opportunity. Lithium and battery prices have dropped significantly, and recently, EVs have reached a price point similar to other vehicles. By 2030, the demand for clean energy, especially in transport, will grow dramatically.
With prices dropping and demand skyrocketing, now is the time to invest in lithium.
EnergyX is poised to exploit lithium demand with cutting-edge lithium extraction technology capable of extracting 300% more lithium than current processes.
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