EIA: Natural gas-fired power generation to decrease; coal generation to increase

The U.S. Energy Information Administration expects power generated from natural gas to decrease over the next two years as the power generated from coal increases over the same time, caused largely by the increasing cost of natural gas relative to coal.

The administration’s Short-Term Energy Outlook for February states that the share of electricity generated by natural gas is expected to fall from 30.3 percent in 2012 to 27.6 percent in 2014. Over the same time period, the administration expects coal-fired power generation to rise from 37.4 percent to 39.1 percent.

Although EIA expects coal consumption in the electric power sector to increase to 859 million short tons in 213 and 870 MMst in 2014, the consumption will remain significantly less than the 1,003 MMst averaged during 2000 to 2009.

The STEO also shows a steady decrease in natural gas used for power generation, predicting the number to decrease from 25.0 billion cubic feet per day in 2012 to 23.1 Bcf/d in 2013 and 22.6 Bcf/d in 2014.

“Consumption over the forecast period is less than the record-high 2012 levels, but remains high by historical standards and reflects an ongoing structural shift toward using more natural gas for power generation,” the report states.

The administration predicts the price of natural gas to increase from its 2012 average of $2.75 million metric British thermal units at the Henry Hub to $3.53 per MMBtu in 2013 and $3.84 per MMBtu in 2014.

The report also shows a growth in renewable energy sources, stating that generation from renewable energy sources other than hydropower exhibited the highest rate of growth among all generation sources in recent years and predicting similar growth to continue during the next two years. EIA estimates more than 12 GW of new wind power capacity was added during 2012, with about 40 percent of that coming online in December before the end of year deadline for a federal production tax credit. The credit has been extended for another year.

“EIA currently estimates that wind capacity will increase by 7 percent in 2013 and by 10 percent in 2014,” the report states. “However, electricity generation from wind is projected to increase by 15 percent in 2013, as capacity that came online at the end of 2012 is available for the entire year in 2013. Wind-powered generation is projected to grow by 8 percent in 2014.”

Despite the additional generation in renewable energy sources, lower levels in the water supply of the Pacific Northwest cause a 13 percent drop in hydropower production and offset the growth in other renewable energy sources, leading to a drop of 2.0 percent in total renewable energy consumption in 2012. The administration expects renewable energy consumption to increase by 2.6 percent in 2013 and 4.1 percent in 2014 as increases in renewable energy sources other than hydropower continue.

Read more gas-fired news

Sponsored by FLSmidth
Related Articles
03/25 Henry Hub Average Natural Gas Spot Prices

03/25 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX).

Dominion Va. Power proposes $1 bn, natural gas-fired power plant

Dominion Virginia Power (NYSE: D) said the company is proposing to build a $1 billion, 1,600-MW natural gas-fired power plant in Greensville County.

Follow Power Engineering on Twitter
Latest News

MHPS to supply M501J gas, steam turbines to new combined-cycle power plant in Korea

Mitsubishi Hitachi Power Systems (MHPS), jointly with Marubeni Corp., has received an order f...

Business leaders throw support behind coal plant proposal

Business leaders on Thursday outlined the economic devastation they say could come if New Mex...

TVA seeks public comment for future coal ash storage at Bull Run

The Tennessee Valley Authority (TVA) is asking for public input on plans to expand dry onsite...

California Public Utilities Commission Approves NRG Energy’s Carlsbad Energy Center

California Public Utilities Commission (CPUC) has approved the SDG&E Power Purchase and T...

Vermont joins international effort to fight climate change

Gov. Peter Shumlin says Vermont has signed on to what he called a first-of-its-kind agreement...

Products May 2015

Callaway Energy Center's Replacement Reactor Vessel Closure Head Project

Replacing heavy equipment is one way utilities can extend the life and increase the reliabili...

Managing CCRs and Process Water: Why Handling Bottom Ash Wet May Remain The Best Option

The U.S. coal-fired electric generation industry once again finds itself in the crosshairs of...
Power Engineering Current Issue
03/01/2015
Volume 119, Issue 3
1503pe-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Power Industry Wire News

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free NDT Job Training to Vets, Disadvantaged Young Adults

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free ND...

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tech Talent

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tec...

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possible Delisting

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possi...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>