The electric generation sector is projected to be the fastest growing market for natural gas over the next 15 years. The 1999 Edition of the GRI Baseline Projection expects gas demand for electricty generation, including the total gas input to cogeneration systems, to grow from 5.6 quads in 1997 to 10.3 quads by 2015.
Gas is currently the fuel of choice for new electric capacity.
Gas is expected to maintain this role in the future as a result of technology improvements, the low cost of gas turbines, and the growing influence of environmental concerns. By 2015, the gas market share as a percent of all fuels in electricity generation is expected to increase to 22 percent. The drivers of electricity markets include electric utility and environmental regulations, technological improvements, distributed generation and small power applications, economic factors, divestiture of generating assets, economics of existing nuclear plants, unregulated subsidiaries and merchant plants, and a shift to Btu-based energy sales. Uncertainties associated with this projection include the pace and form of electric restructuring, the response of electric utilities to competition, the implementation of emissions regulations by EPA, technological options available to power plant owners, and consumer response to changes in electricity markets. You must be a registered user to purchase this document.