Full Title: Natural Gas in the U.S. Power Sector
Author(s): Center for Climate and Energy Solutions
Publisher(s): Center for Climate and Energy Solutions
Publication Date: May 1, 2012
Full Text: Download Resource
Description (excerpt):
With the increasing likelihood of a carbon-constrained future, cleaner than coal emissions and forecasts of sustained low prices, natural gas has become the fuel of choice for electricity generation by utilities in the United States. In 2012, the electric power industry planned to bring 23.5 GW of new capacity on line with 37 percent being natural gas-fired (20 percent wind, 18 percent coal, 12 percent solar, 5 percent nuclear, and 8 percent other sources, including hydro, geothermal and biomass). With growing electricity demand and the planned retirement of 39 GW of existing capacity, 223 GW of new generating capacity (including end-use combined heat and power) will be needed between 2010 and 2035. Natural-gas-fired plants account for 60 percent of capacity additions between 2010 and 2035 in the EIA Annual Energy Outlook 2011 Reference case, compared with 25 percent for renewables, 11 percent for coal-fired plants, and 3 percent for nuclear. Note that Federal tax incentives and state energy programs contribute to renewables competitiveness in the 2010 – 2015 time period. For example, with the Production Tax Credit in place until December 2012, wind generation capacity increases more than 18 GW from 2010 – 2015, and with the Investment Tax Credit in place until December 2016, utility and end-use solar capacity additions are forecast to increase by 6.3 GW (7.5 GW through 2016).