As prices in some areas have fallen, many are choosing natural gas for their homes.
But the question of whether natural gas is more affordable than coal and coal-fired power plants is getting more complicated.
A recent study by Bloomberg New Energy Finance found that natural gas power plants in the United States are now more expensive than coal power plants by about $2,000 per megawatt-hour in 2020.
That’s the equivalent of a 3,000-per-cent price increase, according to the report, which relied on data from power utilities and industry analysts.
The report said natural gas prices are about $8 per megajoule, or $4.80 per gigawatt hour.
That is more than double the price for natural gas from coal-powered plants in 2020, which is $4 per megabounce, according the Bloomberg report.
The Bloomberg report came as the Trump administration is moving forward with plans to ease rules that make natural gas and other renewables more affordable.
The new administration has said it will “lower the ceiling” on the amount of natural gas that can be pumped into the grid by capping the amount that can go into the ground.
Natural gas prices were also a factor in a dispute between the Canadian government and New York City over natural gas exports.
New York is trying to import enough natural gas to replace its gas consumption, and the Canadian Energy Research Institute says the U.S. is “in the process of exporting too much.”
The Energy Information Administration said in a statement Thursday that natural-gas prices were expected to increase by 5 per cent by 2019 and 6 per cent between 2019 and 2020.
Natural gas prices averaged $5.65 per megatonnes in 2015, the lowest price since 2005.
In the U, coal-burning power plants generated about half of the country’s electricity in 2019.
That’s down from 64 per cent in 2005, according data from the U:In 2020, coal power output was projected to decline by more than 9 per cent to a mere 3.5 million megawatts, while natural gas production was expected to grow by a smaller, 1.6 per cent.