New England's Reliance on Natural Gas Rises Despite Renewable Shift

A recent study by the Fiscal Alliance Foundation has found that despite efforts to shift towards renewable energy sources, New England's reliance on natural gas for electric generation remains high. The report, titled 'New England's Energy Transition: Colliding With Reality,' analyzed data from ISO-New England and found that in 2023, natural gas made up 55.4% of the region's electric generation, a slight increase from 2000 when it accounted for 54.6%.

The study attributes this trend to a combination of factors, including the Great Recession and the boom in shale-gas production. However, the report also notes that natural gas prices are expected to continue rising as the region's carbon-reduction program, RGGI, drives up costs. The price of RGGI allowances has risen from $13.49 in 2023 to $35 by June this year, with ISO-New England estimating that carbon-pricing programs increased average wholesale energy prices by about $9/MWh in 2025.

The study's author, Lisa Linowes, warns that the region is driving up operating costs for its existing gas fleet while discouraging investment in new natural gas capacity. The report recommends permitting new high-efficiency natural gas generation and expanding pipelines to deliver low-cost gas from Pennsylvania, which has been blocked by environmental challenges in New York.

The Fiscal Alliance Foundation's study highlights the need for a more balanced approach to energy policy, one that takes into account both the benefits of renewable energy sources and the importance of reliable, affordable fossil fuels. By understanding the complexities of the region's energy landscape, policymakers can work towards creating a more sustainable and efficient energy future.