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EIA Expects Lower Natural Gas Use In Power Generation In Texas Amid Solar Capacity Boost
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EIA Expects Lower Natural Gas Use In Power Generation In Texas Amid Solar Capacity Boost
Apr 10, 2024 3:18 AM

05:52 AM EDT, 04/10/2024 (MT Newswires) -- The US Energy Information Administration expects less use of natural gas generation in Texas during the middle of the day amid an increase in solar capacity on the Electric Reliability Council of Texas grid.

The agency also said it expects less use of natural gas in the summer when electricity demand is at its highest in Texas. Still, natural gas will continue to be a key source of electricity generation in the evening when demand is high and solar generation diminishes.

The electricity mix in Texas changed noticeably in 2023 as wind turbine capacity additions slowed that year and solar capacity additions, often colocated with storage, grew rapidly, the EIA said. However, wind power remains the largest source of renewable power in the state.

In Texas's wholesale electricity markets, natural gas-fired electricity generation usually helps balance changes in electricity demand with daily cycles in wind and solar electricity generation, the EIA noted.

In 2023, installed solar capacity in Texas amounted to around 16 gigawatts. Power plant developers are planning to add around 24 GW of solar power net summer capacity to the ERCOT grid in 2024 and 2025, compared with only 3 GW of additional wind power capacity during the same period, the EIA said.

Meanwhile, the EIA estimated 3 GW of added natural gas capacity over the next two years.

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