Renewables to meet rising power demand with 26 GW battery storage in 2027

The U.S. electric power sector is expected to install over 26 gigawatts of battery storage next year, supporting a renewable energy base projected to supply almost a quarter of electricity consumption in 2027, according to the Energy Information Administration (EIA) as reported by Utility Dive.

Solar and wind power are anticipated to add about 72 GW and 20 GW of new capacity respectively through this year and next, while generation from other energy sources is expected to remain flat or decline, the EIA said.

The share of natural gas in electric power generation is forecast to hold steady at around 40%, with nuclear energy averaging 18%, while coal's share is expected to decline from 17% in 2025 to 15% by 2027 due to scheduled retirements of coal capacity.

Coal consumption in the electric power sector has decreased in eight of the first ten months of this year, driven by increased wind and solar capacity and a 9% drop in natural gas prices during the second and third quarters, the EIA noted.

Battery storage capacity is projected to grow significantly, rising from 28.9 GW in early 2025 to 66 GW by the end of 2025 and reaching 91.7 GW by the end of 2027, enhancing the integration of renewable energy sources.

While commercial and industrial electricity demand is expected to grow robustly, this may be partly offset by lower residential demand due to milder summer weather forecasts, according to the EIA's short-term outlook.