Gas-fired Power Generation Sets New Records Over Summer: EIA

Gas-fired power plant usage continued trending upwards during the hot months of the summer, at times accounting for half of U.S. electricity generation, according to an analysis released by the U.S. Energy Information Administration on Oct. 8.

Nine of the 10 highest days in U.S. gas-fired power generation history occurred from June to August, according to the EIA. On Aug. 2, gas-fired power added 7.1 million megawatt-hours (MWh) to the U.S. power grid, a record. 

Overall U.S. electricity generation rose 3% from 2023, with gas-fired power rising 3% overall as well. Several factors encouraged power companies to rely on natural gas. Prices for natural gas remained low, utilities continue to move away from coal usage, summer temperatures remained high and many utilities have grown their gas-fired capacities. 

Also, as renewable electricity usage continues to grow, utilities see gas-fired generation as the most reliable and quickest source of back-up power for wind and solar energy, said analysts for Energy Intelligence.

During a seminar on Oct. 8, the company’s analysts noted the correlation between wind energy levels and gas-fired power. On July 9, gas-fired power added 6.9 million MWh to the U.S. energy grid. On the same day, wind energy added 300,000 MWh, about a million fewer megawatt-hours than the daily average. 

Analysts expect the demand for natural gas to continue increasing for the long term, sparked by the explosive growth of data centers and an overall increasing demand for electricity. In June, Rystad Energy predicted that the U.S. would need to increase electrical output by about 300 terawatt-hours by 2030, a 7.5% increase, or enough to power Turkey.