The good news is that the U.S. electrical grid added more than 20 gigawatts (GW) of generation capacity during the first half of 2024, according to an August 2024 analysis from the Energy Information Administration. That’s a 20% increase over the amount added during the first half of 2023.

Another 42 GW are expected to be added in the second part of the year, with more than half of it coming from solar and most of the rest coming from battery storage and wind power.

The bad news is that it’s probably not enough to keep up with growing demand. One challenge is that, despite the addition of new solar and wind projects to the grid, old power plants—especially coal—are going away.

Another challenge is that, according to Eric Gimon, senior fellow at the think tank Energy Innovation, “One gigawatt of solar [capacity] is not the same as one gigawatt of coal or gas capacity.”

He explained the issue as one of production: solar panels generate energy only when it’s sunny and wind turbines generate only when it’s windy.

There remain other obstacles to grid capacity, such as finding enough space to build new projects, building more transmission lines and the challenge of getting consumers to alter their habits when it comes to electricity use. Some utility companies are assisting with the latter by offering incentives to residents to recharge their electric vehicles on nights and weekends when demand is lower.

Paul Dabbar, adjunct senior research fellow with Columbia University’s Center on Global Energy Policy, views the increasing electricity demand in a positive light, crediting the country’s growth for pushing demand and pointing out that growth ultimately leads to more jobs and contributes to a thriving economy.

“You’re seeing environmental improvement. You’re seeing economic growth that needs electricity,” he said.