Natural Gas-Fired Generating Capacity Expected to Increase

Over the next two years, U.S. natural gas-fired generating capacity is projected to increase by more than 36 gigawatts (GW).

That's according to the U.S. Energy Information Administration (EIA), which expects capacity additions to total 11.2 GW in 2017 and 25.4 GW in 2018. If the additions come online as planned, it would mark the most net additions for natural gas-fired generating capacity in more than a decade and an 8 percent increase over 2016 existing capacity. 

The chart below highlights the net annual change in U.S. natural gas-fired generating capacity. 

Source: U.S. Energy Information Administration

As the EIA notes, the projected expansion of natural gas-fired generating capacity comes after available coal-fired capacity fell by an estimated 47.2 GW over the past five years, equivalent to a 15 percent reduction in the U.S. coal fleet. 

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Currently, many of the natural gas-fired power plants under construction are located near the major U.S. natural gas shale plays in Mid-Atlantic states and Texas. However, with natural gas prices expected to increase this year and in 2018, some planned additions could potentially be delayed or cancelled. 

Looking for additional insights into the latest natural gas and electricity market news? We track the latest industry trends and report them out on a regular basis. Here’s our most recent Energy Market Update video. 

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