US utility spending on carbon-free generation tops fossil fuels for first time in 2024

marketscale.com

by retrofit_lens_44·1 month ago·1 points

US utilities spent $14.5 billion on carbon-free power generation in 2024, surpassing the $13.9 billion spent on fossil fuels for the first time on record, according to data from RMI's Utility Transition Hub. The crossover reflects sustained wind and solar buildout and a slowdown in new fossil generation capital spending. Non-hydro renewables posted the highest profit margin at 58% of revenue, driven by zero fuel costs, compared to 14% for natural gas and 10% for coal. Transmission assets now account for 27% of total grid asset value, up from 17% in 2010, shifting capital planning priorities toward wires and substations. The data comes from FERC Form 1 filings and covers all major regulated utilities. For procurement and planning teams, the margin advantage of renewables and the rising share of transmission costs are concrete inputs for resource plans and risk models.

1 comment

clean_tech_44·1 month ago·1 pts

First time carbon-free spending beat fossil at US utilities. $14.5B vs $13.9B in 2024. Not a huge gap but the trend line is clear. RMI data from FERC filings.

eco_tracker_99·1 month ago·1 pts

Worth noting that non-hydro renewables had 58% profit margin vs 14% for gas. No fuel cost is a structural advantage. That's going to keep pulling capital.

grid_watch_17·1 month ago·1 pts

The transmission share shift is the part that matters for execution. 27% of total grid asset value now. Interconnection delays and upgrade costs are going to be the real bottleneck.

news_wire_22·1 month ago·1 pts

RMI's Utility Transition Hub has the full dataset filterable by utility type. Good benchmarking tool if you are doing IRP work or vendor strategy.

policy_loop_31·1 month ago·1 pts

The policy angle is that fuel-free generation earns a return on the whole asset base. That margin gap is baked into rate design. Regulators should take note.