Power Plays: How the U.S., India, and China Are Shaping the Future of Energy
According to the International Energy Association, “Global renewable electricity generation is forecast to climb to over 17 000 TWh (60 EJ) by 2030, an increase of almost 90% from 2023. This would be enough to meet the combined power demand of China and the United States in 2030.” So I figured we could explore the generation mix across three regions - United States, India, and China - this week.
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The electricity generation landscapes of the United States, India, and China showcase distinct strategies shaped by their unique priorities and challenges. Here’s a breakdown noting that these are updates roughly from the middle of 2024:
📊 Installed Capacity
United States: Boasts 1,300,000 MW (1.3GW), according to a report from American Public Power Association, with a strong shift towards renewables like solar and wind. 🌞💨
India: Stands at 444,757 MW, according to MNRE, with a balanced mix: 54.6% fossil fuels and 45.4% non-fossil fuels. 🏭🌿
China: Leads with 1,713,000 MW (1.7 GW), of which 55% comes from zero-emission sources. 🌏✨
🪨 Fossil Fuel Dependency
United States: Natural gas dominates at 43.65%, with coal reduced to 16%. 🔥
India: Coal is king at 47.4%, while gas and diesel contribute 5.6% and 0.1%, respectively. 🏭
China: Coal still powers 59.6% of electricity but is gradually being replaced by renewables. 🌪️
🌞💨 Renewables and Non-Fossil Fuels
United States: Solar and wind lead the charge, with 17,000 MW of solar added in 2023 and 35,000 MW projected for 2024. Utility-scale solar dominates, with increasing investments driven by declining costs, tax incentives, and state mandates.Wind power has grown to 11.64%, showcasing its role in decarbonizing the grid, particularly in states with high wind potential like Texas and Iowa. 🌅⚡
India:
Solar: 18.9% ☀️
Wind: 10.4% 🌬️
Hydro (large and small): 10.6% 💧
Biomass and others: 3.5% 🌾♻️
China: Achieved a record 44% of electricity from clean energy sources in May 2024, with coal's share dropping to 53%. 🌳🔋
🔋 Energy Storage Rising
United States: Energy storage capacity has seen exponential growth, with 7,000 MW (7 GW) added in 2023 alone and 11,668 MW (11.6 GW) projected for 2024. Storage systems, primarily battery-based, are critical for balancing intermittent renewable sources like wind and solar. California leads the nation in storage deployment, leveraging its aggressive renewable energy targets.
India: India is aiming to boost its energy storage capacity by 12X to 60 GW by 2032 to keep pace with the growth of renewables and to meet its stated energy targets. The challenge however lies in the fact that an overwhelming portion of the battery components are imported into the country, making widespread deployment heavily reliant on subsidies and incentives.
China: According to the China Energy Storage Alliance, by September 2024, installed capacity of operational energy storage projects reached 111.49 GW.
⚛️ Nuclear Power
United States: Nuclear remains stable at about 8% with an additional 2.4% growth expected and is not expanding significantly. 🛑⚛️
India: Nuclear accounts for 1.8%, with potential for modest growth. 🔋
China: Significant investments in nuclear energy as part of clean energy strategies and accounts for about 5% of total energy mix. 🚀
It is important to also note that ~86% of of new capacity in the US is funded by the private sector, even as there continues to be delays in coal plant retirements. It will be interesting to see how the wind industry shapes up considering the expected increase in tariffs on imported materials. Unlike solar PV, developing the wind industry - especially the offshore wind - requires port capacity to house the components and facilities. Even as India continues to rapidly build out wind and solar PV capacities, grid instability and regional disparities continue will continue to challenge access and reliability to these new assets, and one that is heavily reliant on government investments. China is a paradoxical leader in that it continues to invest heavily in renewables while maintaining coal dominance.
Are there trends you’re observing that we should talk about?
What’s the status of carbon capture?