Headwinds for US Gas Power: 2021 Update on the Growing Market for Clean Energy Portfolios

The document argues that new investment in US gas-fired power plants is becoming uneconomic due to the rise of Clean Energy Portfolios (CEPs)—combinations of wind, solar, energy efficiency, demand response, and battery storage. As of late 2021, 88 GW of gas capacity was proposed, but over 50% of proposed new gas plants have been cancelled prior to construction in the last two years. The analysis finds that CEPs are a cheaper option in more than 80% of sites where gas plants are proposed for service by 2030, and at least 70 GW of proposed gas could be economically avoided, potentially saving $22 billion and 873 MMT of CO2. The report highlights significant stranded cost risks, noting that in a central analysis case, 40% of proposed combined cycle gas plants would cost more to operate than a new CEP costs to build within 10 years.

• Clean Energy Portfolios (CEPs), which combine wind, solar, energy efficiency, demand response, and battery energy storage, are increasingly replacing the need for new gas investment. In 2020, these components represented over 90% of new capacity entering interconnection queues.
• CEPs are more economical than proposed gas plants in over 80% of sites where gas plants are proposed to enter service by 2030. Specifically, at least 70 GW of proposed gas could be avoided economically using CEPs, which would result in savings of $22 billion and a reduction of 873 MMT of CO2 over the projects' lifetimes.
• New gas plants face severe economic and policy risks that could make them uneconomic. If gas prices return to 2021 highs, 88% of new plants would be uneconomic; if they must bear the cost of securing reliable fuel supply to prevent outages like those seen in Texas in February 2021, 95% would be uneconomic. Additionally, 100% of proposed plants are threatened if policymakers prioritize job creation, as CEPs create more net jobs.
• There is a high risk of stranded assets for new gas plants. In the central analysis case, 40% of proposed combined cycle gas plants will have operating costs that exceed the construction cost of a new CEP within 10 years. This risk could increase to 80%–90% under scenarios of lower renewables costs or high gas prices.
• Market dynamics have shifted against gas power, with more than 50% of proposed new gas plants cancelled prior to construction over the last two years.

APA

Dyson, M., Engel, A., Odom, C., & Shwisberg, L. (2021). Headwinds for US Gas Power: 2021 Update on the Growing Market for Clean Energy Portfolios. RMI. https://rmi.org/app/uploads/2021/12/clean_enery_portfolios_brief_2021.pdf

Chicago

Dyson, Mark, Alex Engel, Caitlin Odom, and Lauren Shwisberg. Headwinds for US Gas Power: 2021 Update on the Growing Market for Clean Energy Portfolios. RMI, 2021. https://rmi.org/app/uploads/2021/12/clean_enery_portfolios_brief_2021.pdf.

Wikipedia

{{cite report |last1=Dyson |first1=Mark |last2=Engel |first2=Alex |last3=Odom |first3=Caitlin |last4=Shwisberg |first4=Lauren |title=Headwinds for US Gas Power: 2021 Update on the Growing Market for Clean Energy Portfolios |publisher=RMI |date=December 2021 |url=https://rmi.org/app/uploads/2021/12/clean_enery_portfolios_brief_2021.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dyson2021headwinds, author = {Dyson, Mark and Engel, Alex and Odom, Caitlin and Shwisberg, Lauren}, title = {{Headwinds for US Gas Power: 2021 Update on the Growing Market for Clean Energy Portfolios}}, institution = {RMI}, year = {2021}, month = dec, url = {https://rmi.org/app/uploads/2021/12/clean_enery_portfolios_brief_2021.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }