According to the US Energy Information Administration, up to 11.2 GW of new gas-fired power generation capacities could be added in 2017 and 25.4 GW in 2018; this 36.6 GW capacity addition would correspond to an 8% increase compared to the installed capacity at the end of 2016 and would be the highest net addition since 2005. Most of the new gas-fired capacities are developed in the Mid-Atlantic states and Texas, where major natural gas shale plays are located.
These new power plants, which are mainly CCGT projects, will replace coal-fired power plants, since the available coal-fired capacity fell by an estimated 47.2 GW between the end of 2011 and the end of 2016, i.e. a 15% reduction in the coal fleet capacity over this five-year period. Coal-fired power plants are being retired to comply with the implementation of environmental regulations.
Cheaper gas prices also contribute to switching fuels, even if the EIA expects gas prices to rise in 2017-2018, which may postpone or cancel some gas-fired projects. Higher gas prices could also incite power producers to lower their use of gas-fired capacity: the share of gas in the total US power generation could fall from 34% in 2016 to 32% in 2017, to the advantage of coal (from 30% to 32%). In 2018, the expansion of gas-fired capacity should contribute to a higher gas share in the US power mix.
Interested in Power Plants?
Enerdata has developed a market research service to screen, monitor and analyse the development of power generation assets.
Power Plant Tracker offers an interactive database and a powerful search engine covering power plants worldwide – including both installed and planned capacities for renewables and fossil fuels.