Natural Gas Accounts for Increasing Share of Electricity Generation in Florida: EIA

Natural gas fired generation has accounted for a larger share of the electricity generation in Florida over the past 20 years, according to the U.S. Energy Information Administration. Natural gas accounted for 31 percent of Florida’s electricity generation in 2022. The installation of 26.8 gigawatts (GW) of new and advanced natural gas fired capacity over the 2002-2022 period has led natural gas usage in Florida’s electricity mix to increase to 75 percent in 2022.

The increase in gas usage in the electricity mix can be attributed to both an increase in natural gas production across the U.S. and a decline in the utilization of coal and oil fired generation. Moreover, increasing natural gas production throughout the U.S. and the development of the Southeast U.S. pipeline network, has made natural gas a relatively cheaper fuel in the generation mix and therefore been pivotal in supplying the new power plants.

Natural gas has also accounted for a larger share of the generation mix in recent years due to older, less efficient coal and oil fired generation assets retiring. As coal and oil assets increase in age, they become more costly in producing electricity and as a result have given the pathway for the increasing utilization of natural gas fired power plants. Since 2002, 4.2 GW of coal fired generation assets have been taken offline, as a result coal fired power plants now account for 6 percent of the generation mix in 2022 compared to 33 percent in 2002.

Oil fired generation accounted for 1 percent of Florida’s electricity generation mix in 2022, compared to 17 percent in 2002. The decline in oil fired generation is because of 6.5 GW or 80 percent of the operating fleet retiring over the 20 year period.

Apart from the decline in coal and oil usage in electricity generation, solar has also been a key driver in changing the state’s generation mix. Solar’s share of electricity generation in 2022 was 4 percent and accounts for 5.9 GW of total capacity.

Florida’s generation mix is expected to continue evolving over the 2023-2026 period, with 1.8 GW of natural gas capacity additions expected, whilst solar additions are projected to be 5.5 GW. Coal retirements are expected to continue with total retirements estimated at 1GW up until 2026.