US Power Market Shifts as Gas Gains Ground on Renewables

A dynamic shift is underway in the U.S. power generation landscape. Downward revisions in electricity demand forecasts in key states are altering the competitive landscape and narrowing the cost gap between natural gas and renewables.

The lower domestic natural gas prices are providing a tailwind for gas-fired generation, while renewables and storage still dominate U.S. interconnection queues in aggregate.

Natural gas has seen the largest percentage increase in proposed capacity, nearly tripling since 2024, as capital expenditures across all generation asset classes rise.