The Role of Natural Gas in Powering the Future of U.S. Electricity

As global demand for electricity continues to rise, the need for reliable baseload power generation has never been more pressing. Energy analysts and industry leaders alike are emphasizing the pivotal role that natural gas-fired power plants will play in meeting the growing energy needs of the U.S. and supporting the shift to a modern, low-emissions grid.

Natural Gas: The Backbone of Reliable Electricity

With the U.S. leading the world in natural gas production, the importance of this resource cannot be overstated. The country’s vast natural gas reserves, coupled with an extensive and well-maintained pipeline infrastructure, make it one of the most reliable and accessible sources of power generation. Natural gas provides consistent, around-the-clock energy, a necessity in an era where intermittent renewable sources like wind and solar are expanding but are not yet capable of supplying reliable 24/7 electricity.

Lucian Niemeyer, CEO of Building Cyber Security and former Assistant Secretary of Defense for Energy, Installations, and Environment, stressed this point at the P3 Electrified conference in San Diego, California. According to Niemeyer, “natural gas is going to grow … there is no other solution” when it comes to providing dependable baseload power, especially as artificial intelligence (AI) and other energy-intensive technologies drive demand to unprecedented levels.

Niemeyer’s message is clear: the future of power generation must be built on reliable sources. While nuclear and hydropower will have their roles, natural gas is already established and able to deliver the dependable energy needed today and for the foreseeable future.

Environmental Benefits of Natural Gas

Mary Landrieu, a former U.S. senator from Louisiana and now senior policy advisor for Van Ness Feldman, points out that natural gas has already played a significant role in reducing U.S. carbon emissions. “The majority of the emissions reductions of the United States in the last 10 years are directly attributed to more natural gas being used and less coal,” she noted in a recent episode of The POWER Podcast.

Natural gas-fired plants emit significantly fewer greenhouse gases than their coal-fired counterparts, offering a cleaner alternative that can be deployed at scale. Furthermore, natural gas is relatively inexpensive, which helps keep electricity costs lower for businesses and consumers alike. This affordability, combined with its availability and reduced emissions profile, makes natural gas an ideal partner for renewable energy sources like wind and solar. Together, they can create a modern, low-emissions electric grid capable of meeting the country’s growing energy needs while keeping costs in check.

Meeting the Growing Power Demands of AI

As AI technology continues to evolve and permeate industries worldwide, the demand for power will only increase. Data centers, which are critical to supporting AI applications, require vast amounts of electricity to function reliably. Niemeyer highlighted that while nuclear power could eventually help supply this demand, the timeline for building and scaling new nuclear facilities is still five to seven years away. In contrast, natural gas is available now and can support the immediate need for reliable power, particularly as new data centers are constructed across the country.

In this context, natural gas is seen not only as a bridge to future technologies but as an integral part of the power generation mix. “We cannot rely on renewables alone,” Niemeyer remarked during his keynote at the P3 Electrified conference. “There are only a few distribution sources that can give us that baseload dispatchable power, and natural gas is one of them.”

U.S. Natural Gas Infrastructure and Power Plant Development

The U.S. is well-positioned to leverage its natural gas resources thanks to its extensive infrastructure. The country has over a hundred years’ worth of natural gas supply and a pipeline network that can efficiently transport gas from production sites to power plants and end-users. This infrastructure is critical to maintaining the availability and reliability of natural gas as a power source.

In fact, the U.S. electric utilities and investors are already planning for the future. According to S&P Global Market Intelligence, as of May 2024, there were 133 new natural gas-fired power plants in development across the U.S. One of the most notable projects is Duke Energy’s plan to bring 10 new gas-fired units online by 2033, representing a combined capacity of 9 GW. Other major developments include the 1,158-MW Orange County Advanced Power Station in Texas, scheduled for completion in 2026, and the 1.2-GW Sandow Lakes Energy Co. plant in Texas, slated for 2028.

The West County Energy Center in Palm Beach County, Florida, currently stands as the largest gas-fired power plant in the U.S., with a generation capacity of 3,750 MW. This facility, which opened in 2009, highlights the scale of natural gas power plants in the U.S. and their critical role in maintaining grid reliability.

Natural Gas and Being a Good Grid Citizen™

In addition to its role in ensuring reliable power, natural gas-fired generation helps utilities and businesses be “Good Grid Citizens™.” As demand on the grid increases, maintaining grid stability becomes critical. Natural gas power plants, with their ability to ramp up quickly and provide dispatchable energy, allow grid operators to balance supply and demand effectively. This helps prevent outages and ensures a steady flow of electricity, particularly during periods of peak demand. By investing in natural gas as a flexible and responsive power source, companies and utilities contribute to overall grid reliability, supporting not only their own operations but also the wider community by helping to maintain a stable, efficient, and resilient energy grid. Embracing this approach ensures that all stakeholders are doing their part to foster a sustainable, secure energy future.

Global Insights on Gas-Fired Power

Natural gas-fired power is not just critical in the U.S.; it plays an essential role in global electricity generation. The world’s largest gas-fired complex, the Jebel Ali Power and Desalination Plant in the United Arab Emirates, has a staggering generation capacity of 8,595 MW. Other major plants, such as the Surgutskaya GRES-2 in Russia (5,597 MW) and the Futtsu power station in Japan (5,040 MW), further demonstrate how nations around the world are investing in gas-fired infrastructure to support their energy needs.

These global examples illustrate the scalability of natural gas power generation, further reinforcing the idea that gas-fired plants will remain a cornerstone of global energy strategies for years to come.

Natural gas is already the foundation of the U.S. power generation system, and its importance will only grow as the demand for reliable, low-emissions electricity increases. While renewable energy sources such as wind and solar are critical to the future of energy generation, they must be supported by reliable baseload power. Natural gas, with its affordability, availability, and lower emissions, is uniquely positioned to provide that support.

As AI and other energy-intensive technologies continue to develop, natural gas will play a pivotal role in meeting the growing power needs of industries and ensuring grid reliability. The continued development of natural gas-fired power plants across the U.S. and around the world underscores the essential role this resource will play in the future of global energy.

References:

Power Magazine, “Experts Say Gas-Fired Power Key to Reliable U.S. Electricity Supply,” October 2024.

S&P Global Market Intelligence, “U.S. Utilities Announce 133 New Natural Gas-Fired Plants,” May 2024.