NREL sees natural gas, renewables gaining US market share

18 Nov 2016   Renewables, Shale Gas

Natural gas-fired and renewable resources are expected to enjoy growing generation mix shares over the next three decades, driven by low-cost gas and renewable energy cost declines and performance improvements, according to analysis by the US Department of Energy’s National Renewable Energy Laboratory. The report released Wednesday — the 2016 Standard Scenarios: A US Electricity Sector Outlook — aims to identify a range of possible futures for the US electricity sector. The emergence of low-cost gas has driven major changes in the power sector, with the annual average capacity factor for combined-cycle generators jumping from 35% in 2005 to over 56% in 2015 at the expense of coal-fired generation, the report said. NREL expects gas prices to remain generally low. “Despite increases in commodity prices, including natural gas prices, in mid-2016, the outlook for continued low-priced natural gas looks firm, given the currently high levels of underground storage and […]

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