U.S. Expected to Add 7.7 Gigawatts of Gas-Fired Generating Capacity Over Next Two Years: EIA

In the U.S. 6.8 gigawatts (GW) of electricity producing capacity from 10 natural gas fired electricity assets have come online so far in 2023 according to an Oct. 16 report from the U.S. Energy Information Administration. The agency estimates that an additional six natural gas fired electricity plants totalling 1.8 GW of capacity will come online by the end of the year and bring the total of new gas fired power plants to 8.6 GW during 2023. The agency’s projection of 16 new natural gas fired electricity assets in 2023 incorporates both combined cycle gas turbine plants, or CCGT and simple cycle gas turbine, or SCGT, assets located near the Gulf Coast and Appalachia natural gas production regions and in Florida.

Last year, 11 natural gas fired electricity assets came online, totaling 5.6 GW of capacity and this is in contrast to the previous three years. Moreover, the agency projects that 20 new natural gas fired electricity plants will come online during 2024 and 2025, with a capacity of 7.7 GW.

CCGTs have the ability to run for prolonged periods of time and can deliver baseload and peakload power because they are extremely efficient. As a result, they have become an attractive option for security of supply across the U.S. in recent years. In 2022 and 2023, 13 new CCGT plants would have become operational with a total production capacity of 12.4 GW. Out of the total production capacity, 5.8 GW is placed in Florida and Michigan, with both states predominantly generating power from gas fired electricity assets. The agency expects 4.9 GW of further gas fired electricity additions over the next two years.

In the U.S. 14 SCGTs have become operational during 2022 and 2023, with a total capacity of 1.9 GW. The average production of each asset has been around 140 megawatts and is significantly lower than CCGTs. However, SCGTs in contrast are equipped to swiftly increase processes in reaction to changes in demand or when other sources of supply are unavailable.  Majority of the new SCGTs have been in Texas. Moreover, 2.8 GW of capacity is expected to come online in 2024 and 2025, mostly in Texas, near high population regions.