Natural Gas Power Plants Hold the Key to Electric Reliability

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According to experts, natural gas power plants are more important now than ever before as it relates to the reliability of the electric supply.  Reasons include, but are not limited to, the rapid expansion of artificial intelligence (AI), the increasing presence of data centers, and population growth.

In fact, according to one expert speaking at the recent P3 Electrified conference in San Diego, “natural gas is going to grow … there is no other solution.”  Let’s take a peek behind the curtain on this perspective.

The Reliability Value of Natural Gas Power Plants

The key part of the equation is that the need for reliable baseload power generation will grow in the future, so much so that the addition of new clean energy sources alone will not meet the increased need.  While nuclear plants could help fill the gap, they are extremely expensive and time-consuming to build, and as such they represent a less desirable option.

Plus, the U.S. leads the world in natural gas production, has over a 100-year supply, and possesses a best-of-breed pipeline infrastructure.  It’s also a relatively cheap, low-emission fuel source.  All of this implies that we can expect more natural gas plants to be built going forward.

In fact, in May 2024, S&P Global Market Intelligence claimed that 133 new natural gas power plants were in various stages of development across the U.S. – including 10 new plants from Duke Energy that are expected to enter service by 2033.  But some of the largest plants in terms of generation capacity are earmarked for Texas – including a 1,158 MW plant being built by Entergy (online in 2026), and a 1.2 GW plant being built by Shadow Lakes Energy Co. (online in 2028).

The bottom line is that demand for electricity is only going to increase going forward, and renewable and nuclear energy sources can only plug the gap so much.  Thus, it’s natural gas power plants to the rescue.