Low natural gas prices, hotter summer weather, and increased power generation capacity led to a record high in U.S. natural gas-fired electricity production this summer. On some days, gas-fired electricity accounted for nearly half of the total power output.
The peak was reached on August 2, when natural gas power plants in the U.S. produced over 7 million megawatt hours (MWh) of electricity, according to the U.S. Energy Information Administration (EIA). This figure represents a 6.8% increase over the previous record, set on July 28, 2023.
During the summer of 2024, nine out of the ten days with the highest natural gas-fired electricity generation in U.S. history occurred. Six of those record days were in August 2024.
Overall, electricity generation from June to August 2024 increased by 3% compared to the summer of 2023. The daily average for natural gas-fired electricity generation also rose by 3% year-over-year, reaching 5.9 million MWh, as reported by the EIA’s Hourly Electric Grid Monitor.
The EIA noted a significant shift in the sources of electricity generation in the U.S. over the past few years. There has been a move towards more renewable energy and natural gas, while reliance on coal has decreased. As renewable energy capacity grows, natural gas plays a crucial role in balancing the inconsistent electricity produced from wind and solar sources.
So far this year, natural gas-fired power generation has reached new heights in the U.S. Between January and September, power producers generated a total of 55.6 million MWh from gas-fired plants. This marks a 5% increase compared to the same period last year and represents the highest generation from natural gas since at least 2021, according to data from LSEG cited by Reuters columnist Gavin Maguire.
In recent years, power demand in the U.S. has surged, primarily driven by gas-fired power plants. This demand is expected to grow further as electrification increases and more electricity is needed to power and cool data centers.
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