Record-Breaking Natural Gas Power Generation in the US this Summer

Factors Leading to Record Highs

The United States set a new record in natural gas-fired power generation this summer, thanks to low natural gas prices, warmer summer weather, and the addition of new generation capacity. On some days, nearly half of the total power output was produced by gas-fired electricity.

Significant Dates and Figures

The highest record was reached on August 2, when US natural gas-fired power plants generated over 7 million megawatt hours (MWh) of electricity, according to the U.S. Energy Information Administration. This figure surpassed the previous summer's record set on July 28, 2023, by 6.8%. Nine out of the ten days with the highest natural gas-fired electricity generation on record happened in the summer of 2024, with six of these days occurring in August 2024.

Year-Over-Year Increase

The total electricity generation for the summer of 2024 (June through August) increased by 3% compared to the summer of 2023. The daily average for natural gas-fired electricity generation also saw a 3% year-over-year increase, reaching 5.9 million MWh, as reported by the EIA’s Hourly Electric Grid Monitor.

Shift in Electricity Generation Sources

Over the past few years, the United States has seen a shift in the sources of electricity generation, particularly in the summer. There has been a move towards more renewables and natural gas and less coal. As the generation capacity from renewable sources grows, natural gas is increasingly used to balance the intermittent nature of electricity produced from wind and solar.

Record High for the Year

So far this year, natural gas-fired power generation in the United States has soared to a record high. Between January and September, US power producers generated a total of 55.6 million MWh from gas-fired power plants, a 5% increase compared to the same period last year. This is the highest power generation from natural gas since at least 2021.

Rising Power Demand

In recent years, power demand in the United States, largely supplied by gas-fired power plants, has surged. This trend is expected to continue with the increase in electrification and the growing need for electricity to power and cool data centers.

Bottom Line

The record-breaking natural gas power generation in the United States this summer indicates a significant shift in the country's energy landscape. With the growing demand for power and the increasing use of natural gas to balance the intermittent nature of renewable energy sources, it's clear that natural gas will continue to play a crucial role in the US's energy future. What are your thoughts on this development? Feel free to share this article with your friends. Don't forget to sign up for the Daily Briefing, available every day at 6pm.