A number of different factors can influence electricity rates in the year ahead. Natural gas prices are one of the most critical indicators, since over a third of America’s electricity — a plurality among all power sources — is derived from natural gas. Gas prices spiked during the winter, but strong production suggests that prices will fall over the course of the next year. Despite looser regulatory restriction, coal is likely to continue to decline as a source of power due to competition from more efficient gas power plants and a more vigorous renewables sector.
- The author states that although there have been advancements in the US when it concerns wind and solar development, natural gas is still needed for reliable baseload generation.
- The prices of natural gas rose up during the winter of 2018 and 2019 but experts believe the price will fall again after the winter.
- The US is currently the third largest exporter of liquefied natural gas after Qatar and Australia and LNG exports are expected to double in 2019.
“For 2019, natural gas remains on top as the single largest fuel source for electricity in the US, generating 35% of all power in the US.”