Cooperative Living June 2022 - 23

CUTTING EDGE
●●●●●●●● Energy Sources
The changing power mix means new expertise is needed
by Michael Leitman, Contributing Columnist
A
s the economy continues to recover from the
COVID-19 pandemic, the energy sector is still
experiencing lingering impacts to fuel markets and
sources for power generation. In the coming years, however,
the industry is expected to normalize to recent trends and
the pre-pandemic trajectory.
At the height of the pandemic in 2020, national retail
electricity sales declined by 2.5%, accompanied by a shift in
demand patterns and in generation mix. As people spent
more time at home, U.S. residential sales rose by 1.7% while
commercial and industrial sales fell by 5.4% and 4.3%,
respectively.
time at home, U.S. residential sales rose by 1.7% while
time at
by
With demand for natural gas declining, generators took
advantage oflow fuel prices and the share ofpower coming
from gas-fired resources increased for the third straight year,
while the share from coal continued to decline.
THE ROLE OF GA
In 2021, the economy started to reopen, and demand
recovered, but natural gas production was slow to ramp up,
leading to increased prices. As a result, the share ofU.S.
electricity powered by natural gas in 2021 fell for the first
time since 2017.
This drop was offset by an increase in coal-fired generation,
bucking a multi-year trend that saw the use ofcoal for
electricity declining every year since 2014.
Though natural gas remains the dominant fuel
source in the U.S., the share from non-hydro
renewables, primarily wind and solar, has steadily
increased for the last several years.
Going forward, the U.S. Energy Information
Administration projects that the share ofcoal
and natural gas in the electric generation mix
will decline as the rapid growth ofnon-hydro
renewables, especially solar, continues. According
to EIA, renewable energy sources will surpass
natural gas as the largest source for generation
by 2030.
Nevertheless, natural gas is expected to
remain an important fuel source for electric
power, due to its abundant supply. Gas-fired units
can respond more easily to changes in system
conditions, which is crucial for maintaining grid
reliability, as the fuel mix transitions to higher penetrations
ofwind and solar resources that do not run all the time.
co-opliving.com
Old Dominion Electric Cooperative operates
the Wildcat Point gas plant in Maryland.
MichaelLeitman writes on consumer and cooperative affairs
for theNationalRuralElectric CooperativeAssociation.
June 2022 ● Cooperative Living ●
21
Modernizing the
national grid with
new technologies
can offer a variety
of solutions.
Batteries, which have become
cheaper and more powerful in recent years, will also play
an important role in supporting renewable resources.
NEED FOR RESILIENC
In recent years, severe weather events have highlighted the
need for fuel diversity. If one source of power is constrained
during a storm, having others available to fi l the gap can
provide stability and keep the lights on.
But as th
ut as the generation mix shifts away from conventional
ne
ion
shifts away
fr
con
ion
fuels, additional changes will be necessary to accommodate
the upcoming changes and ensure resiliency and reliability.
Modernizing the national grid with new technologies
can offer a variety ofsolutions during the energy transition.
The use ofadvanced data, two-way communications and
digital software enable better and more efficient management
ofthe electric system. Although traditional, hands-on roles
are still crucial for electric operations, there will be a need for
new expertise to integrate and utilize these new technologies
across the entire energy industry.
Through the evolution ofthe power generation mix and
the electric sector in general over the next several years, electric
cooperatives will have challenges and opportunities as they
continue to provide safe, reliable and affordable power to
the communities they serve. 
PHOTO COURTESY ODEC
http://www.co-opliving.com
Cooperative Living June 2022

Table of Contents for the Digital Edition of Cooperative Living June 2022
