New England’s Energy Reliability: The Importance of Natural Gas, Oil, and Coal
On particularly cold winter evenings, residents of New England rely heavily on the electrical grid to keep them safe and warm. However, the growing emphasis on transitioning to renewable energy sources often overshadows the importance of maintaining a reliable energy mix. Recent events have illustrated the precarious nature of this balance, highlighting the critical role that traditional energy sources—such as natural gas, oil, and coal—continue to play in meeting peak demands.
Recent Peak Demand Events
In January 2025, New England faced significant challenges when the Independent Systems Operator-New England (ISO-NE) recorded a peak demand of 19,600 megawatts (MW) at 6 p.m. on January 21, narrowly missing earlier forecasts of 20,308 MW. During this intense demand period, the grid turned to baseload generation sources more than usual, particularly relying on oil and coal to stabilize the situation.
According to the Energy Information Agency, there were specific hours where thermal plants fueled by oil provided more electricity than those powered by natural gas, a rare occurrence in the region. This shift was necessary due to the high prices and insufficient natural gas supplies, which prompted ISO-NE to utilize oil until additional natural gas supplies were available from a liquefied natural gas (LNG) import terminal in Everett, Massachusetts.
The Implications of Energy Policy
Although New England managed to avoid blackouts this time, the situation raises critical concerns about the long-term viability of the region’s energy policies. Currently, all six states in the ISO-NE region have enacted renewable portfolio standards, with Rhode Island and Vermont mandating a shift to 100% renewable energy by 2040. Such ambitious targets prompt the question: where will the reliable energy come from?
Transitioning to renewable sources often focuses on wind and solar power, which lack the dispatchable energy capabilities needed to meet peak demands reliably. The approaching closure of the region’s last two coal-fired power plants, slated for 2025 and 2028, adds further urgency, as these facilities are being replaced with solar installations and battery units for offshore wind power. Without these baseload power sources, ISO-NE risks facing significant supply constraints during periods of low solar and wind availability.
The North American Electric Reliability Corporation has indicated that New England may encounter increased risks of energy supply shortfalls after 2026, emphasizing the need for a more diversified energy portfolio.
Potential Solutions and Considerations
To enhance energy reliability, increasing the capacity of natural gas pipelines could mitigate the region’s vulnerability to supply shocks. However, progress on new pipeline projects, such as Kinder Morgan’s Northeast Energy Direct and Spectra’s Access Northeast, has encountered hurdles due to political and financial challenges.
Alternatively, reconsidering regulations like the Jones Act could lower the costs of transporting LNG, making it easier to import essential resources. A reliable electric grid requires a mix of dispatchable energy sources, including natural gas, oil, coal, and potentially nuclear power, to ensure that it can meet both baseline and peak demands effectively.
Conclusion
While New England narrowly escaped significant blackouts this winter, the ongoing trend of phasing out reliable energy sources in favor of greener alternatives could threaten future energy security. The region’s reliance on solar, wind, and battery storage alone may not suffice when faced with extreme weather and high energy demands. As policymakers consider the future of energy in New England, they must balance sustainability goals with the need for a dependable and resilient electricity grid.
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