United States Thermal Power Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The United States thermal power market is expected to grow at a CAGR of more than 0.5% during the forecast period of 2020-2025. Factors such as declining natural gas prices in the last decade are expected to drive the United States thermal power market during the forecast period. However, reducing renewable energy prices has provided an economically viable cleaner alternative, which is expected to restrain the market's growth.
Key Highlights• Natural gas is among the cleanest fuels, which can provide electricity at an industrial scale economically. Gas-fired power generation has already started to displace coal capacity in the country and is expected to replace it entirely in the coming decades. Although investments in renewables are expected to grow significantly, the flexibility afforded by gas-fired power generation is expected to continue to be in demand.
• Among the most significant drivers of the natural gas thermal power plants is its use as backup power for unreliability in renewable sources like wind and solar. Natural gas plants can start running on short notice, which can increase the utility grid's reliability.
• In 2019, natural gas was the largest source of electricity generation in the United States. The electricity generation from gas-fired power plants in the country was 1586 billion kilowatt-hours (KWh), which accounted for 38.4% of the total electricity generated in the country.
• The country has seen a significant increase in shale oil and gas production, drastically reducing the United States' dependence on the global energy supply chains. Reduction in natural gas prices has further aided the growth of the natural gas thermal power market.
• Therefore, owing to the above points, the natural gas segment is likely to dominate the market growth during the forecast period.
Increasing Investments in Thermal Power Expected to Drive the MarketThe United States thermal power market is moderately fragmented. Some of the key players in this market include NextEra Energy, Inc., Dominion Energy, Inc., Duke Energy Corporation, Southern Company, and American Electric Power Company Inc
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