From fossil dominance to diversification
The U.S. energy mix is shifting faster than expected. Renewables accounted for 24 percent of electricity generation in 2024, up from 17 percent in 2019. Federal incentives under the Inflation Reduction Act (IRA) have unleashed over $370 billion in clean-energy commitments.
Table 1. U.S. Energy Mix (%)
| Source | 2019 | 2023 | 2025 (f) |
|---|---|---|---|
| Natural Gas | 38 | 39 | 37 |
| Coal | 23 | 17 | 14 |
| Renewables | 17 | 23 | 24 |
| Nuclear | 19 | 19 | 19 |
Sources: EIA; DOE.
Table 2. Clean-Energy Investment ($ B)
| Category | 2021 | 2023 | 2025 (f) |
|---|---|---|---|
| Solar & Storage | 52 | 78 | 95 |
| Wind & Grid | 33 | 46 | 59 |
| EV & Battery Supply Chain | 27 | 61 | 75 |
Source: Bloomberg NEF 2025.
Economic implications
Energy transition adds 0.4 percentage points to annual GDP growth but requires vast transmission investment. Fossil-fuel employment declines modestly; renewable-sector hiring more than offsets it in the South and Midwest.
Strategic guidance
Energy-intensive industries should adopt dual-fuel strategies and pursue IRA-linked tax credits. Investors can expect volatility in power pricing until grid modernization catches up around 2027.