Electricity Generation 

Why We Need to Invest in Generation Now

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.

Demand for electricity is increasing.

• According to the Energy Information Administration (EIA), annual electricity demand is expected to increase 23 percent by 2030. View the bar graph .

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

• A report from The Brattle Group indicates that the electric power industry will need to invest approximately $505 billion in new generation from 2010 to 2030, in order to maintain a reliable supply of electricity. This does not include any additional investment necessary to meet future federal climate change regulations.

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.

EEI Resources

• Generation Status Update 
  This monthly report tracks capacity additions, announcements and cancellations of new capacity for all sectors by fuel and prime mover.
• Liquefied Natural Gas Infrastructure in the United States: A Capacity Adequacy Study
  Despite the uncertainty surrounding the future of natural gas supply and demand in the United States, most forecasts project a considerable increase of LNG imports in coming years. This study analyzes the adequacy of the country’s LNG infrastructure by looking at the effects of three different future scenarios on LNG import and regasification capacity.
• 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.
• Renewable Energy: Growth and Challenges in the Electric Power Industry 
  This guide provides an overview of recent trends and challenges presented by renewable energy sources, specifically wind power, bioenergy, geothermal energy, hydrogen power, solar energy, hydropower, and tidal power. While emphasizing the multiple benefits derived from renewable energy sources, the guide also focuses on a variety of key issues, such as the importance of federal and state support policies, and the need to maintain a reliable power system.
• State Generation & Transmission Siting Directory: Agencies, Contacts, and Regulation
  This resource contains regulatory contacts and summary information for siting of generation and transmission facilities in 50 states. Print copies are available. Please contact Rick Loughery at 202-508-5647 or rloughery@eei.org. 
• Transforming America's Power Industry: The Investment Challenge 2010-2030
  Prepared by The Brattle Group for The Edison Foundation, November 2008.
• Wholesale Markets Guide 
  This product outlines the operating procedures, regulations, and market rules for regional transmission organizations.