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matched the growth in the gross domestic product (GDP), the indicator of economic health The reasons for this increasing demand for electricity include the population expansion, the surge in the use of electrically powered labor-saving machines, tools, and appliances, wider acceptance of air conditioning in all parts of the country, and the popularity of home entertainment electronics and computers Newer models of TVs, stereo systems, and computers consume more power than their predecessors, and the Internet has attracted nearly around-the-clock home computer operation Deregulation introduced competition and the price of electricity with respect to the cost of living index has fallen, encouraging even more consumption The electric power industry recognizes three major customer groups: residential, commercial, and industrial As one might expect, the number of residential customers far exceeds the number of commercial and industrial customers The commercial customer base includes retail stores, hotels, offices, and restaurants, but the ratio of customers to the total sales of electricity is relatively small The customer base in the industrial sector is the smallest, accounting for less than 1 percent of all electric utility customers The sector consists primarily of large corporations engaged in manufacturing, mining, and the processing of oil, chemicals, metals, and food Surprisingly, each of these groups buys about one-third of the total power generated in the United States However, there is yet another smaller group of customers, not classed among the big 3 because it consumes less than 3 percent of all electricity generated This group includes railroads, national, state, and local government agencies, and the state and municipal authorities that pay for street and highway lighting
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More than 85 percent of all electric power generated in North America is produced by AC generators that are driven by steam turbines Of this amount, more than 65 percent of the steam is produced by burning of fossil fuels, primarily coal and natural gas The pie chart Fig 2-1 illustrates the distribution of energy sources for electrical power generation in the United States The proportions hold for North America and many European countries as well Coal is the dominant fossil fuel consumed to produce steam, accounting for more than 50 percent of all energy consumed Despite its reputation as a constant threat to its neighbors, nuclear energy accounts for only about 20 percent of the energy consumed for electric power generation The nuclear reactors function only as steam generators Natural gas is in third place among energy sources for steam generation Oil is also a fossil fuel accounting for only about 3 percent of the energy consumed for electric generation, but most of it is used to power gas turbines in turbine generators or as fuel for the diesel engines in engine generator sets Coal remains the dominant fuel worldwide for producing the steam required for electric power generation, despite efforts toward using the so-called renewable resources: water power, wind power, and solar power Coal retains its importance because it is plentiful and relatively inexpensive and because many industrialized countries have
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Figure 2-1 The use of different energy sources to generate electrical power in the United States
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adequate domestic sources The United States, for example, does not have to depend on foreign sources for coal The burning of coal, oil, and natural gas provides 85 percent of the world s commercial energy and 80 percent of all human-caused carbon dioxide emissions Energy demand has nearly doubled in the past 30 years, and it is expected to increase another 60 percent by 2020 At present only about 10 percent of the world s total energy is supplied by renewable energy, although in some countries its use is said to be growing rapidly This figure is comparable to the approximately 10 percent figure for North America Hydroelectric power dominates among the renewable sources, but such alternative sources as wind turbines, solar cells, biomass fuels, and hydrogen fuel cells still account for only a few percentage points Nevertheless, some studies have predicted that renewable energy sources could provide half the world s energy needs by 2050 The burning of fossil fuels has been identified as the source of most of the world s pollutants sulfur dioxide, nitrogen dioxide, particulates, and ozone These emissions have been blamed for air pollution, smog, and acid rain, and they have been identified as a major cause of death and serious health problems However, motor vehicles produce far more of these pollutants than electric power plants Because it is easier to focus on power plants than vehicles, citizen groups, environmentalists, and health professionals have demanded more government regulations to control and possibly eliminate objectionable emissions from power plants Despite the fact that the electric power industry has done much to reduce its emissions over the past 20 years, primarily as a result of new plant construction, friction between the government and the industry still exists Some power plant owners have argued that some pollution control regulations are excessive, impractical, and too costly to implement in older plants They say that compliance would be so expensive that they would either have to shut down the plants or raise electric rates They add that by shutting down the plants they would deprive many people living nearby of a reliable local power source, and that low-income families would be unable to pay the higher rates Some have said that the obvious solution is to build more nuclear power plants because they do not produce pollutants, but this argument does not seem to be a viable
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