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• distribution • fuel diversity • generation • natural gas • transmission

• generation resources electric company members only • EEI committees and other resources

Generation

Today, our economy relies more than ever on reliable, affordable supplies of electricity.  The use of electricity has grown dramatically over the last 30 years and mirrors our nation's economic growth. 

While efficiency improvements have had a major impact in meeting national electricity needs relative to new supply, the demand for electricity continues to increase. As demand for electricity grows, new power plants that rely on a diversity of fuels are needed to ensure adequate electricity supplies in the future.

Learn why we need to invest in generation now:

• Demand for electricity is increasing.
• New power plants are needed to ensure adequate electricity supplies for the future.
• Capacity margins are declining.

• Demand for electricity is increasing.

According to the Energy Information Administration (EIA), annual electricity demand is expected to increase by 1.5 percent per year through 2030. Overall, electricity consumption is expected to increase by at least 40 percent by 2030.

Increasing Electricity Demand, 1970-2030

• New power plants are needed to ensure adequate electricity supplies for the future.

According to EIA, 258 gigawatts (GW) of new generating capacity will be needed by 2030 to meet the growing demand for electricity, at a cost of approximately $412 billion (in 2005 dollars).  This is equivalent to approximately 250-500 new baseload power plants (rated between ½ GW and 1 GW each).

• Capacity margins are declining.

Capacity margins are used to measure the amount of "extra" generating capacity that electric companies maintain to meet emergency demand situations. The North American Electric Reliability Corporation (NERC) forecasts that most U.S. regions will see the reserve margins they need to meet demand decline through 2015.
 

© 2008 Edison Electric Institute