In the first four months of 2021, natural gas-fired generation in the Lower 48 states averaged 3,394 gigawatthours (GWh) per day, a nearly 7% decrease from the same period in 2020, according to data from our
Hourly Electric Grid Monitor. The decline in natural gas generation during the first four months of this year is the result of higher natural gas prices and increased competition from renewables, and it is the first year-over-year decline since 2017. Overall, U.S. electricity generation during the period increased 6.6% compared with 2020 because of colder winter weather.
Natural gas-fired generation has been facing increased competition from renewable generation in the United States because of recent record-high capacity additions to wind and solar power plants. Between May 2020 and February 2021 (the most recent month for which we have data), 22.5 gigawatts (GW) of combined net wind and solar electric generating capacity additions came online in the United States, a 15% in
Note: Data are for the California region, which includes electric power markets regulated by the California Independent System Operator (CAISO) and other balancing authorities operating largely in California.
In California wholesale electricity markets, natural gas-fired electricity generation helps to balance fluctuations in electricity demand with daily cycles in solar-powered electricity generation. Natural gas and solar are the two most prevalent sources of electricity generation in California; however, solar generation is non-dispatchable. Grid operators in the state use natural gas and, to a lesser extent, hydroelectricity and electricity imports from neighboring areas to balance changes in electricity demand.
Both demand for electricity and output from natural gas-fired power plants in California are often highest in the afternoon and early evening, between 4:00 p.m. to 7:00 p.m. Output from solar power will peak and then plateau by midday, rapidly declining by the ev