CHICAGO: US natural gas-fired power generation in the Lower 48 states fell during the first four months of the year for the first time since 2017 due to higher prices and rising competition from renewables and coal, according to federal data.
Gas-fired generation averaged 3,394 gigawatthours (GWh) per day, a 7% decrease from the same period in 2020, the US Energy Information Administration (EIA) said in a report on Monday.
Overall, US electric generation increased 6.6% during the period compared with 2020 because of colder winter weather, EIA said.
Gas-fired generation has been facing increased competition from renewables because of recent record-high wind and solar capacity additions.
Between May 2020 and February 2021, 22.5 gigawatts (GW) of US wind and solar capacity came online, a 15% increase. EIA said it expects an additional 28.7 GW of wind and solar capacity to enter service during the remainder of 2021.
That compares with just 4.8 GW of new gas-fired capacity between May 2020 and February 2021, a 1% increase. EIA said it expects an additional 3.8 GW of gas capacity to come online during the remainder of 2021. One gigawatt can power about one million US homes.
US gas prices have risen since April 2020 because of lower production and higher winter heating demand compared with the previous winter year.
Prices at the Henry Hub benchmark averaged $2.83 per million British thermal units from January-April, despite a cold snap and record-high prices in mid-February.
Higher prices have made gas-fired generation less competitive compared with coal-fired plants.
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