U.S. Utility Insights

Record Renewables & Storage/VPP Surge

Record Renewables & Storage/VPP Surge

Key Questions

What record did wind and solar achieve in 2025?

Wind and solar generated a record 17% of U.S. electricity in 2025, according to the EIA. Including small-scale solar, the share reaches 19%.

What is the outlook for renewables and storage in 2026?

EIA projects wind and solar at 17% for 2025, with storage PPAs and EPCs accelerating into 2026. A diverse energy mix is key to mitigating volatility.

What is the significance of Xcel's VPP approval in Minnesota?

Minnesota approved Xcel's 200MW utility-owned Virtual Power Plant (VPP) for DER integration. It marks the start of utility-owned VPPs, using batteries and demand response for grid stability.

Why are batteries and demand response essential for renewables?

Batteries and DR address intermittency in data centers and renewables. They enable VPPs to integrate distributed energy resources effectively.

How does the 2026 energy outlook address volatility?

Utility-scale solar is projected to grow at 3% CAGR through 2035. Renewables and storage surges help diversify the mix and reduce exposure to volatility.

EIA wind/solar 17% U.S. electricity 2025; 2026 storage PPAs/EPCs accelerating. New: MN Xcel 200MW utility VPP approval for DER integration; batteries/DR essential for DC intermittency.

Sources (3)
Updated Apr 10, 2026
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