Fuel Diversity

No individual fuel is capable of providing the energy to meet all of our nation's electricity demands. That's because certain fuels in the electricity generation mix are better suited than others for particular applications. A variety of fuels—as well as increasingly more cost-effective and efficient ways to use and conserve energy—is needed.

Fuel diversity is key to affordable and reliable electricity. A diverse fuel mix protects electric companies and consumers from contingencies such as fuel unavailability, price fluctuations, and changes in regulatory practices.

Fuels and Technologies

Electric generators need access to a diverse fuel supply to meet our nation's increasing demand for electricity. According to the U.S. Energy Information Administration (EIA), electricity consumption is expected to increase 31 percent by 2035.

The electric power industry is now preparing to generate electricity in a carbon-constrained world. In the future, all generation sources will come from no- or low-emitting carbon resources. The development of innovative technologies will allow electric utilities to provide reliable and affordable electricity while generating fewer emissions.

Learn about the many different fuels that can be used to generate electricity, as well as the technologies designed or being developed to produce energy efficiently and reduce potentially harmful emissions.

Additional Resources

Generation Fuels - 2007 Market Development
The report tracks relevant information about the different fuels markets (coal, gas, nuclear, renewables and oil) for the previous year. It includes data and analyses on generation output and fuel price trends, as well as the most prominent factors behind them, such as domestic production, imports, global markets, and policy developments.
Utility Supply Portfolio Diversity Requirement
The Brattle Group, May 2007. Addresses the PURPA Fuel Source Standard and discusses the limitations of financial portfolio theory as applied to utility resource diversification.