U.S. Boosts Natural Gas Power as Wind Output Slumps to 33-Month Low

U.S. natural gas-fired power generation jumped this week amid the lowest wind power output in 33 months seen on Monday while demand for cooling is rising in the summer.

On July 22, wind power output in the Lower 48 states was at its lowest level in the country since October 4, 2021, per preliminary data from the U.S. Energy Information Administration (EIA) cited by Reuters. This was despite constantly rising wind power capacity installations over the past three years.

The hot summer with low wind speeds has led to low wind power generation, which has prompted power producers to boost natural gas-powered generation to keep up with the summer electricity demand.

So far this year, six of the 10 lowest days for wind power have occurred in July, according to Reuters estimates. Last year, just two of the 10 lowest wind power output days were in the month of July.

Last year, slower wind speeds than normal led to the first annual drop in U.S. electricity generation from wind turbines since the mid-1990s, despite the addition of 6.2 gigawatts (GW) of new wind capacity in 2023, the EIA said earlier this year. U.S. wind generation in 2023 totaled 425,235 gigawatthours (GWh), down by 2.1% compared to the 434,297 GWh generated in 2022.

“The 2023 decline in wind generation indicates that wind as a generation source is maturing after decades of rapid growth,” the EIA noted.

To offset lower wind power output, U.S. electricity generators have fired up more natural gas plants which can provide reliable energy when wind speeds are low.

Natural gas-fired electricity generation in the United States has jumped year-to-date compared to the same period last year, as total power demand rose with warmer temperatures and demand from data centers.

For years, natural gas has accounted for the largest share of U.S. power generation, at around 40% of all electricity-generating sources.

This year, natural gas is expected to provide around 42% of America’s electricity, similar to last year, as total consumption is set to grow by 3% in 2024 and another 2% in 2025, per data from the EIA.

By Charles Kennedy for Oilprice.com

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