Solar and wind overtakes coal as US US shifts to renewables
Coal’s role decreasing
According to Ember’s Global Electricity Review 2024 published in March, coal’s share in the US electricity mix dropped from 19% in 2022 to 16% in 2023.
This decline is part of a broader trend observed across OECD countries, where coal generation fell to just 17% of total electricity generation in 2023, down from 36% at its peak in 2007.
Fossil fuels fall below 50%
March 2025 also saw fossil fuels contribute less than 50% to the US electricity mix for the first time on record, dropping to 49.2% from 57% the previous month.
This milestone was driven by a significant rise — nearly 25% — in wind and solar energy generation.
Drivers of the transition
Several factors are accelerating this shift:
Economic Viability: The decreasing costs of renewable technologies and battery storage make them more competitive.
Policy Support: Government initiatives and incentives are promoting clean energy adoption.
Environmental Concerns: Growing awareness of climate change impacts is influencing energy choices.
[Source: Ember Climate]
Implications for coal
The decline in coal usage has significant implications for coal-dependent companies.
For instance, Peabody Energy Corp. is experiencing market pressures as demand shifts. As of April 30, 2025, BTU’s stock price is $12.81, reflecting the industry’s challenges.
Looking ahead
The US energy sector is poised for continued disruption as demand for electricity grows after 14 years of staying nearly flat.
With plans to add 32 gigawatts of solar capacity in 2025, solar generation could see a 33% boost, as per the US Department of Energy.