U.S. Power Generation Growth Through 2027

Solar and batteries expand as gas leads and coal declines nationwide

U.S. electricity generation continues to grow as power demand increases across the country. Total electricity generation reached about 4,260 billion kilowatt hours in 2025. Forecasts show generation rising by 1.1% in 2026 and by 2.6% in 2027, reaching nearly 4,423 billion kilowatthours. 

Traditional dispatchable energy sources such as natural gas, coal, and nuclear power supplied about three quarters of total electricity in 2025. Their combined share is expected to fall slightly by 2027 as renewable energy sources continue to expand.  

Solar and wind power together are projected to grow from about 18% of total generation in 2025 to roughly 21% by 2027. 

Utility scale solar power is the fastest growing source of electricity. Solar generation is forecast to rise from 290 billion kilowatt hours in 2025 to 424 billion kilowat thours in 2027. Nearly 70 gigawatts of new solar capacity are expected to come online during this period, increasing national solar capacity by almost half compared to the end of 2025. 

Texas plays a major role in this growth. Solar generation within the grid managed by Electric Reliability Council of Texas is expected to nearly double by 2027. Battery storage is also expanding in Texas, helping balance daily changes in solar output and improving grid reliability. 

Wind energy remains strong in the central United States, particularly in areas managed by Midcontinent Independent System Operator. However, new wind additions have slowed, and wind generation in this region is expected to remain steady through 2027. Solar generation in the Midwest is increasing gradually. 

Natural gas continues to be the largest source of electricity nationwide. While total gas fired generation rises slightly by 2027, its share of total generation declines as renewables grows. Increased demand from data centers is supporting higher gas generation in regions such as PJM Interconnection. 

Coal generation rose in 2025 due to cold weather and higher gas prices. However, ongoing plant retirements are expected to reduce coal generation steadily through 2027, lowering its share of total electricity production. Overall, the U.S. power sector is shifting toward cleaner energy while maintaining reliability to meet growing electricity needs. 

Photo Credit: istock-shansekala