EIA Sees ‘Reduced Need’ for Electricity from Natural Gas, Coal

Renewables such as solar and wind are expected to command a greater share of U.S. electricity generation at the expense of fossil fuel-fired power plants over the next two years, the Energy Information Administration (EIA) said.

“Our forecast of growth in renewable electricity generation over the next two years leads to our forecast of a reduced need for fossil-fueled generation,” EIA stated in its January Short-Term Energy Outlook (STEO).

Major U.S. grid operator PJM Interconnection has warned that “adequate” electricity supply from thermal fuel sources such as gas and coal would still be necessary amid the energy transition. Similarly, IHS Markit Vice Chairman Daniel Yergin recently told NGI that replacing oil and gas with alternative energies may take decades.

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