As renewable energy capacity expands rapidly across the United States, two states have already achieved a significant milestone: over half of their utility generation capacity comes from wind and solar power.
While California and Texas lead in absolute capacity additions, these are not the states boasting the highest proportion of renewables in their generation mix.
Iowa and New Mexico: Renewable Energy Leaders
According to data from the U.S. Energy Information Administration (EIA) and Cleanview, Iowa and New Mexico stand out as the frontrunners, with over 50% of their generation capacity derived from wind and solar energy.
In Iowa, the second-largest wind power producer after Texas, wind and solar capacity combined accounts for 55.43% of the state’s utility generation capacity, with wind contributing 54.1% and solar 1.3%.
Meanwhile, New Mexico boasts 50.78% of its utility capacity from wind and solar, with wind providing 37.1% and solar 13.7%. Renewable energy stands as the largest source of New Mexico’s in-state electricity generation. In 2023, wind power alone accounted for 38% of total in-state generation, as per EIA data. In less than a decade, the state’s renewable energy generation has increased more than sixfold.
Wind Power’s Prominence in New Mexico and Iowa
New Mexico ranks among the top five states for wind energy potential. Last year, wind energy constituted 81% of the state’s renewable generation and represented the largest share of total in-state generation at 38%.
In terms of capacity, New Mexico ranked ninth nationwide at the end of 2023, with roughly 4,400 megawatts (MW) of installed wind power. An additional 1,800 MW of solar power capacity and associated battery storage is expected to be operational this year.
Similarly, in Iowa, renewable resources accounted for nearly two-thirds of total electricity net generation in 2022, primarily from wind. Wind energy powered 62% of Iowa’s net generation, the highest share of any U.S. state.
The growth in wind power has led to a decline in coal’s share of the state’s electricity generation, dropping to 25% in 2022 from 44% five years earlier.
Natural Gas Remains Crucial for Grid Reliability
While wind and solar capacity is expanding, natural gas continues to play a vital role in ensuring the reliability of power systems across the United States.
Coal also maintains a significant share, exceeding 15% of the electricity mix, surpassing any single renewable source.
Coal vs. Renewables in the U.S. Electricity Mix
In 2022, for the first time, all renewable energy sources combined—wind, solar, hydropower, biomass, and geothermal—outpaced coal-fired generation in the U.S. electric power sector.
However, coal still accounts for approximately 16% of electricity generation, surpassing individual contributions from wind (11%), hydropower (6%), or solar power (4%).
Fossil Fuels and Natural Gas Dominance
Fossil fuels currently provide 60% of total U.S. electricity generation, with gas accounting for 43% and coal for over 16% last year.
Natural gas has played a crucial role in meeting high electricity demand during recent heatwaves and periods of low wind generation.
Early this week, natural gas-fired power generation surged amid the lowest wind power output in 33 months. The hot summer, coupled with low wind speeds, has led to decreased wind power generation, prompting increased reliance on natural gas-powered generation to satisfy summer electricity demand.
Projected Growth in Natural Gas Consumption
This year, natural gas is expected to contribute around 42% of America’s electricity, similar to last year. Total natural gas consumption is projected to grow by 3% in 2024 and another 2% in 2025, according to EIA data.