Written by Adam Null
Many people may be most familiar with natural gas as a fuel for heating, however, natural gas has also become a cornerstone of modern power generation, providing clean, reliable, and affordable energy for the U.S. In 2023, natural gas power plants accounted for approximately 39% of utility-scale electricity generation. Power generation in Appalachia via natural gas represents an enormous opportunity for the region. Continuing to effectively implement natural gas-fired power plants will help manage electricity costs, meet rapidly growing power demands, use local natural gas efficiently, and decrease emissions associated with power generation.
As with most things, electricity prices have increased over the years. With its abundant supply of natural gas, primarily from the Marcellus and Utica Shales, Appalachia has benefited from relatively low electricity prices. Continued buildout of generation infrastructure should continue to provide for low electricity cost in the region, even as demand continues to grow. Also, the rate of demand growth is expected to skyrocket in the coming years with the construction of new data centers and increased adoption of electric vehicles, even if on a questionable timeline. There are concerns about the grid handling the growth, however, local use and more distributed generation will play a role in efficiently expanding grid capacity to meet everyone’s needs.
In addition to efficiently expanding the grid, the local use of gas, where possible, may prove to be orders of magnitude more efficient than the alternatives. Although the current gas infrastructure is sufficient to export massive quantities of gas from the region, the prospects of expanding the system by building new interstate pipelines to the Gulf, or LNG facilities at scale on the East Coast seem to be dismal. Rather than fight the multi-billion dollar legal and environmental battles associated with such projects, it seems prudent to use Appalachian resources locally as much as possible. Entice more industries to enter the region with prospects of low-cost feedstock and electricity. This would be a huge benefit for those who live and work in the region and may be the most efficient and effective way to use our natural gas resource.
As a final benefit to adding natural gas-powered generation, associated emissions are relatively low when compared with coal-fired generation. Pennsylvania has taken the lead in this philosophy with approximately 62% of its electricity being generated from natural gas and only around 5% generated with coal. Ohio also generates the bulk of its electricity from natural gas, with about 60% of generation; however, Ohio still has 22% coal-fired generation that could be phased out over time. West Virginia has by far the largest opportunity with nearly 90% of its electricity generated by coal and only around 6% by natural gas. A move to natural gas would represent a significant reduction in emissions and cleaner air for the state.The opportunity for Appalachia to leverage its abundant natural gas resources for local power generation is clear. By prioritizing regional energy production, the area can address growing power demands while maintaining affordable electricity prices for businesses and residents. This approach not only strengthens the local economy by attracting industry and creating jobs but also reduces emissions and supports environmental goals. As the region moves forward, utilizing natural gas close to its source represents a practical, efficient, and sustainable solution for Appalachia’s energy future.
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