According to a recent report from the Energy Information Administration (EIA), electricity generation from natural gas-powered units across the Lower 48 states of the U.S. has shown a consistent increase throughout all hours of the day since 2021. The EIA sourced this information from data reported on Form EIA-930, which tracks Hourly and Daily Balancing Authority Operations.
This surge in natural gas-based electricity production is primarily attributed to several factors outlined by the EIA. These include the retirement of coal-powered units, the expansion of natural gas-fired electricity generating capacity, and the sustained low prices of natural gas observed throughout 2023.
The data provided by the EIA reveals a notable uptick in off-peak natural gas-fired generation, which surged by approximately 22% between 2021 and 2023. This increase has resulted in the displacement of coal-fired units as a primary source of electricity during overnight hours.
Balancing authorities responsible for managing the electrical grid report the volume of electricity generated by various fuel sources through Form EIA-930. However, it’s important to note that these authorities may not possess precise information regarding actual fuel consumption.
For a more comprehensive understanding of fuel consumption in electricity generation, the EIA collects and reports actual fuel consumption data through other surveys. This information is subsequently detailed in the Electric Power Monthly report, albeit with a longer lag time and on a monthly basis.