Oil, Coal Help Power New England During January Cold Snap: EIA

Oil and coal were utilized in the electricity generation mix in New England, due to curtailed generation from natural gas fired power plants from January 18 to January 22, 2025 according to a Feb. 5 report published by the U.S. Energy Information Administration.

Below seasonal normal temperatures in the eastern U.S. during the week of Jan.19 led to high electricity demand. On Jan.21 at 6pm, ISO-New England (ISO-NE) recorded peak hourly demand of 19, 600 megawatts (MW). Despite demand being high it remained lower than the 20,308 MW, forecasted by the ISO-NE in its 2024/2025 winter assessment.

Despite the grid having sufficient production capacity to fulfil demand, a significant portion of that supply came from fuel sources that infrequently operate. The grid utilized older thermal generating plants that burn oil and coal. Between the hours of 11am and 4pm. on Jan. 20, and between the hours of 10am and 1pm on Jan. 21, thermal plants that burn oil supplied more power to the ISO-NE electricity grid than plants that burn natural gas, which is relatively unusual.  Natural gas prices were relatively high during this period and this led to it being a more expensive fuel in the electricity generation mix. Moreover, natural gas demand for residential and business use was higher and the operator opted for using oil and coal.

The operator’s winter assessment examined peak load forecasts, weather outlook, and winter preparedness. Winter 2024/25 is forecast to be warmer than normal, but arctic outbreaks, cold snaps and severe winter storms were possible, as witnessed during the January cold snap.

Capacity is expected to be adequate this winter and fuel replenishment will greatly mitigate any potential for energy shortfalls under extreme conditions. The grid operator’s outlook anticipates operable capacity surplus on the 50/50 and 90/10 forecasts of 2,254 MW and 716 MW, respectively. The ISO’s Inventoried Energy Program, an interim two-year program for winters 2023/24 and 2024/25, provides incentivized payments for winter energy storage capability for five fuel/technology types: batteries, coal, firm gas (supply & transport), oil, and pump-storage.