Natural Gas Use for Electric Power Generation is Reaching New Records in 2023
Figure 1:
- U.S. Energy Information Administration (EIA) records show that natural gas demand for electricity generation in the U.S. reaches its highest peak during the cooling season. Another smaller peak occurs during the heating season.
- The EIA reported that the 2022 domestic electric generation with natural gas hit the highest winter peak since at least 1997.
- The EIA expects natural gas demand for electric generation to set a new record in 2023.
- The EIA’s Short-Term Energy Outlook forecasts record-high U.S. natural gas demand for electricity generation in July and August.
- These records are driven by higher temperatures, lower natural gas prices inducing coal-to-gas switching, and the need for natural gas as a flexible resource to balance variable renewables like wind and solar.
- As shown in Figure 2, the percentage of electric generation from natural gas has been increasing by 1.41% per year since 2015.
- The EIA anticipates that natural gas generation will account for 46% of total generation for July/August and 41% for 2023.
Figure 2:
Source: Based on data from S&P Global Commodity Insights, ©2023 by S&P Global Inc. and the Energy Information Administration (EIA)
Written by: Sophia James and Maren McGrath
AGA Contact: Richard Meyer (rmeyer@aga.org) 202-824-7134
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