Solar Surges as Storage Becomes Grid's New Backbone

Developers are forecast to add a record 43.4 GW of new utility-scale solar PV capacity to the US power system in 2026, a 60% year-on-year increase over 2025 and more than 12 GW above 2024, the current record for capacity additions, according to the US Energy Information Administration . Solar power makes up 51% of the planned 2026 capacity additions, followed by battery storage at 28% and wind at 14% , according to market data.

The numbers tell a story of transformation. Utility-scale solar, wind, and battery storage will add more than 80 gigawatts of new generating capacity in the US by February 28, 2027, while total fossil fuel and nuclear power capacity will fall by almost 5 GW, according to data just released by the EIA . More than half of the new utility-scale solar capacity is planned for four states: Texas (40%), Arizona (6%), California (6%), and Michigan (5%) .

Can Renewables Really Deliver Round-the-Clock Power?

The reliability question has long haunted renewable energy advocates, but new research suggests that debate may be settling. The cost of firm renewable electricity has declined rapidly across all major technologies and markets, and in high-quality solar and wind resource regions, co-located hybrid systems can already deliver round-the-clock electricity at costs competitive with - and in many cases below - those of new fossil-fuel generation, according to a May 2026 report from the International Renewable Energy Agency .

Battery energy storage is expected to surge from 44,630.7 MW to 67,549.6 MW – an increase of 51.4%, according to the EIA . The pairing of solar and storage has become the default project configuration rather than an exception. The largest solar photovoltaic project expected to come online in 2026, Tehuacana Creek 1 Solar and BESS in Texas, will add 837 megawatts along with an additional 418 MW in battery energy storage capacity .

Across Europe, the same pattern is accelerating. European renewable projects paired with battery storage are expected to grow more than 450% by 2030, with Europe's co-located renewable capacity reaching 6.3 gigawatts in 2025, led by solar-plus-storage projects which account for more than 60% of deployments, according to Aurora Energy Research . Curtailed generation across key European markets will climb from more than 10 terawatt-hours in 2024 to about 33 TWh by 2030 , making storage increasingly critical to capture otherwise wasted renewable electricity.

Why Is China Doubling Down on Offshore Wind?

While Western offshore wind faces policy headwinds, China is accelerating. China's total wind power installed capacity hit 650 million kW at the end of February 2026, up 22.8 percent year on year, with cumulative offshore wind installed capacity surpassing 47 million kW, leading the world for five straight years, according to China's National Energy Administration .

In south China's Guangdong Province, a major offshore wind farm project developed by China Huadian Corporation, located up to 89 km offshore, will generate 1.6 billion kWh of clean power annually and reduce carbon emissions by 1.26 million tonnes upon completion . Meanwhile, in east China's Shandong Province, the country's deepest operational offshore wind farm has achieved full grid connection .

China aims to add at least 120 GW of new wind power capacity annually during the upcoming 15th five-year-plan period from 2026 to 2030, including at least 15 GW of offshore wind, reported Xinhua . That's more than double the previous 50 GW annual target. According to Stefan Gsänger, secretary-general of the World Wind Energy Association, the world has roughly 1.2 billion kW in installed wind capacity and 83 million kW in offshore wind capacity, with China accounting for over half of global offshore wind installations .

The technology race continues. In September 2025, Dongfang Electric Corporation completed the installation of a 26 MW offshore wind turbine, which the Chinese company claims is the world's largest in terms of single-unit capacity and rotor diameter, installed at the Wind Power Equipment Testing and Certification Innovation Base in Dongying, Shandong province .

How Are Rising Fuel Costs Reshaping Africa's Energy Infrastructure?

An unexpected renewable energy story is unfolding across Africa, driven by diesel economics rather than climate policy. Orange SA plans to double its solar-powered base stations across Africa, as the fallout from the Iran war makes renewable-energy investments more attractive, according to Bloomberg .

Orange has already installed clean energy systems in 15,000 locations, which accounts for 30% of their total sites across 11 countries in Africa and the Middle East, according to their 2025 annual report . The business case is compelling: energy accounts for up to 60% of operating costs for telecom towers in off-grid areas .

Rising diesel prices linked to the Iran war are adding urgency to a shift already underway across Africa to move cellphone towers off fossil fuels and onto solar power, with diesel powering the majority of Africa's roughly 500,000 telecommunications towers becoming more expensive and sometimes harder to secure in recent weeks, according to the Associated Press .

Vodacom Africa said its energy costs rose 5% to $300 million in 2025 from the prior year, citing higher electricity tariffs and fuel prices . Safaricom raised $153.6 million in green bonds to help it transition its towers to solar power . American-owned Atlas Tower Kenya said it was investing $52.5 million to construct 300 new, solar-powered telecommunication towers , with 82% of its 500 towers already solar powered .

What's Happening with Wind Turbine Manufacturers?

The wind industry's financial picture is improving after years of losses. Siemens Gamesa reduced its loss before special items to €44 million from €249 million in the previous year, with profit margin before special items improving to negative 1.7 percent from negative 9.2 percent, according to GreentechLead . Siemens Energy attributed the improvement primarily to productivity gains and stronger cost efficiency across the wind business .

Siemens Energy maintained its forecast for Siemens Gamesa's profitability while slightly raising its revenue outlook for FY 2026, now expecting comparable revenue growth of 3 percent to 5 percent, compared with the earlier forecast of 1 percent to 3 percent, while continuing to target break-even profit margin before special items for the wind business .

Meanwhile, Chinese turbine manufacturer Mingyang received approval for a major expansion. The Chinese wind turbine giant had originally signed a $10bn investment agreement, but has now boosted its planned spending, according to Recharge News . The project will combine wind power with green hydrogen production, reflecting the industry's push toward integrated clean energy systems.

What Changed This Week

The renewable energy sector is experiencing a fundamental shift from intermittent generation to firm, dispatchable power. Battery storage has moved from supporting technology to core infrastructure, with deployment rates accelerating globally. In the US, solar and storage together will account for nearly 80% of new capacity additions in 2026. Europe is following a similar trajectory, with co-located renewable and battery projects set to quintuple by 2030. Meanwhile, geopolitical disruptions are accelerating renewable adoption in unexpected places, as African telecom operators rush to solar to escape volatile diesel markets.

What to Watch

Former Minnesota Governor Tim Pawlenty will assume the role of SEIA president and CEO on June 15 , bringing Republican credentials to solar advocacy at a critical political moment. The Pentagon is slow-walking the reviews of 165 land-based wind projects, according to the American Clean Power Association, with some reviews of individual projects now going over six months . The military delays are holding up around 30 gigawatts of power from getting onto the grid .

In China, during the 15th Five-Year Plan period (2026-2030), China aims to further develop large-scale offshore wind bases across the Bohai Sea, the Yellow Sea and the East China Sea, and steadily scale up deep-sea wind development . Watch for continued technology competition as Chinese manufacturers push turbine capacity beyond 26 MW while Western OEMs focus on industrializing proven 15 MW platforms. The divergence between China's state-directed offshore wind buildout and Western market-driven approaches will shape global supply chains and technology standards for the next decade.