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36% of Electrical Power Coming Online is From Solar or Wind

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The way America uses energy can’t change overnight.

Despite the hype around renewables, it takes time, money, and new technology to build out these plants at a scale that will make a difference.

As a result, many people are still surprised that solar and wind constitute less than 2% of energy generated in the U.S. as of 2015:

Click here for a larger version of this giant diagram.
Energy consumption in the United States

Yes, oil is the big dog for now, and it will continue to be that way for the foreseeable near-term.

However, the switch to renewables is gaining momentum fast.

We noted earlier this year that solar and wind capacity grew 31% and 5% respectively between 2014 and 2015. However, the following news is even more significant, since it shows that new power coming online from renewables is happening at a scale that will make a considerable dent in the actual energy mix.

New Power Coming Online

The following infographic comes to us from Mantena Notes, and it looks at new energy capacity coming online in the territories of different United States Independent System Operators (ISOs).

First, some background: ISOs are grids in the U.S. that are deregulated, where power plants compete to provide electricity at the lowest price. This infographic looks at what is in their interconnection queues, which are essentially waiting lines for new power plants that have applied to become a part of the grid.

Renewable power coming online

It should be noted that the above additions do not technically represent the whole U.S., but it does help give an idea of what the market is moving towards and what is cost effective. The aforementioned ISOs constitute a very significant chunk of the overall market.

This is how the new power coming online breaks down:

  • 46% natural gas (127 GW)
  • 20% wind (55 GW)
  • 16% solar (44 GW)
  • 5% coal (14 GW)
  • 9% other (35 GW)

The low gas price environment makes switching to natural gas easy, and thus gas makes up the most gigawatts of new capacity coming online.

Solar and wind combine for 99 GW of upcoming capacity, which is significant by almost any measure. For comparison, the largest ever peak in California’s electricity demand occurred on July 24, 2006 for 50.3 GW.

That definitely moves the needle.

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Energy

Visualized: The Growth of Clean Energy Stocks

Visual Capitalist partnered with EnergyX to analyze five major clean energy stocks and explore the factors driving this growth.

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The teaser image shows the growth of clean energy stocks and hints at their cumulative five-year returns.

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The following content is sponsored by EnergyX

The Growth of Clean Energy Stocks

Over the last few years, energy investment trends have shifted from fossil fuels to renewable and sustainable energy sources. Long-term energy investors now see significant returns from clean energy stocks, especially compared to those invested in fossil fuels alone.

For this graphic, Visual Capitalist has collaborated with EnergyX to examine the rise of clean energy stocks and gain a deeper understanding of the factors driving this growth.

Sustainable Energy Stock Performance

In 2023, the IEA reported that 62% of all energy investment went toward sustainable sources. As the world embraces sustainable energy and technologies like EVs, it’s no surprise that clean energy companies provide solid returns for their investors over long periods. 

Taking the top-five clean energy stocks by market cap (as of April 2024) and charting their five-year cumulative returns, it is clear that investments in clean energy are growing:

CompanyPrice: 01/04/2019Price: 12/29/20245-Year-Return %
First Solar, Inc.$46.32$172.28272%
Enphase Energy, Inc.$5.08$132.142,501%
Consolidated Edison, Inc.$76.55$90.9719%
NextEra Energy, Inc.$43.13$60.7441%
Brookfield Renewable Partners$14.78$26.2878%
promotional graphic with a button and wheel that promotes the EnergyX investment site

But how does this compare to the performance of fossil fuel stocks? 

When comparing the performance of the S&P Global Oil Index and the S&P Clean Energy Index between 2019 and 2023, we see that the former returned 15%, whereas the latter returned an impressive 41%. This trend demonstrates the potential for clean energy stocks to yield significant returns on an industry level, sparking optimism and excitement for potential investors. 

A Shift In Returns

With global investment trends moving away from traditional, non-sustainable sources, the companies that could shape the energy transition provide investors with alternative opportunities and avenues for growth. 

One such company is EnergyX. The lithium technology company has patented a groundbreaking technology that can improve lithium extraction rates by an incredible 300%, and its stock price has grown tenfold since its first offering in 2021.

promotional graphic that promotes the EnergyX investment site

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