US Power Market

US Power Market Analysis

The United States Power Market is expected to register a CAGR of greater than 5.6% during the forecast period.

• Natural gas provides for a large amount of electricity in the country, owing to this thermal power is expected to dominate the United States power market during the forecast period.
• The technological advancements in efficiency and reduction in the harmful emissions from thermal power projects are expected to create several market opportunities in the future.
• United States is promoting clean energy generation, therefore increasing in the number of renewable energy projects are expected to drive the United States power market.

US Power Market Trends

Thermal Power to Dominate the Market

• Conventional thermal power is generated through various sources, such as coal, natural gas, and oil. Coal was the third-largest energy source in the United States (US) and about 19% of the power generated in the year 2020 is from coal-fired power plants.
• Out of the various sources of generating conventional thermal power, the majority of energy came from natural gas. In 2020 natural gas contributed approximately 40% to the conventional thermal power electricity generation.
• According to the U.S. Energy Information Administration, between 2022 and 2025, 27.3 gigawatts (GW) of natural gas-fired capacity is scheduled to come online in the United States, this added capacity would increase current capacity (489.1 GW as of August 2021) by 6%.
• As of August 2021, in Texas, natural gas-fired capacity accounts for 70.7 GW, and another 2.8 GW of capacity additions is planned to come online between 2022 and 2025.
• Moreover, Independent power producer C4GT is planning to commission Charles City combined-cycle power project with a capacity of 1,060MW located in Virginia, by the end of 2022. The project is able to supply clean elecricity to 750,000 households in the greater Richmond area in Virginia.
• Owing to above points thermal power generation is expected to dominate the United States Pioweer Market during the forecast period.

Increasing Number of Renewable Projects to Drive the Market

• Due to the high population and increasing electricity demand day-to-day, the country is promoting the growth of renewable energy to meet power needs. Many multinational corporations, and local firms, are investing in the growing sector with the help of the government of federal provinces in the United States.
• As of 2020, the United states installed 117744 megawatts (MW) of wind capacity. Wind provides more than 10% of electricity in 16 states, and over 30% in Iowa, Kansas, Oklahoma, South Dakota, and North Dakota.
• In September 2021, Vestas Wind Systems A/S announced orders to deliver turbines for 290 MW of wind projects in the United States. As a part of this project is supplying 16 units of the V162-6.2 MW turbines in a 6.0 MW operating mode and one V150-6.0 MW machine in a 5.6 MW operating mode for the Deerfield 2 wind farm in Michigan, this inturn culminates for the growth of country's power market.
• Moreover, in November 2020, the New York Siting Board has given Invenergy LLC the green light to proceed with its 340-MW Alle-Catt onshore wind farm project that will spread in three counties of the state. The project has an investment cost of USD 454 million and is expected to supply enough electricity to cover the consumption of 134,000 New York homes per year.
• Owing to above points, increase in the number of renewable projects are expected to drive the United States Power Market during the forecast period.

US Power Industry Overview

The United States Power Market is moderately fragmented. Some of the key players in this market include General Electric Company, Ørsted A/S, Toshiba America Energy Systems Corporation (TAES), Bechtel Corporation, and NextEra Energy Inc. among others.

US Power Market Leaders

US Power Market News

• In October 2020, Equinor has announced its Empire wind project with an installed capacity of 816MW is scheduled to commission by 2024. The project is expected to meet the power needs of more than half a million households in New York. Equinor is currently the sole owner of the Empire wind project and is likely to remain the operator throughout the development, construction, and operations phases.
• In April 2020, Seminole Electric planned to build a new natural gas-fired power plant at its Palatka plant in Florida. The project has an investment cost of USD 727 million and is scheduled for commissioning by the end of 2023.