The US is forecast to experience higher than average temperatures this summer, but net demand for electricity is to remain relatively flat year-on-year due to the higher implementation of demand response and growth in behind-the-meter distributed energy resources.
This will be a record summer for natural gas demand for power generation, Federal Energy Regulatory Commission (FERC) said in its Summer 2018 Energy Market and Reliability Assessment, citing a forecast by the Energy Information Administration (EIA).
The National Oceanic and Atmospheric Administration (NOAA) forecasts an above-normal chance for higher than average temperatures for the West, South, and East for June, July, and August. The expectation for higher than average temperatures is greatest in New England and along a band running from West Texas through the Pacific Northwest.
More than 25 GW of new power capacity is to enter commercial service through the end of the summer period, mainly from natural gas-fired plants and wind and solar farms. At the same time, 10.8 GW of coal-fired capacity and 2.3 GW of natural gas-fired capacity have retired since May 2017.