State of energy production in Mississippi

October 19, 2024

JACKSON, Miss. (WJTV) – With the inevitability of renewable energy in Mississippi’s future, many wonder about the current state of Mississippi’s energy production.

Solar panels were on the minds of many Hinds County residents earlier this year, as Soul City Solar will soon make its presence known around Raymond and Bolton. However, solar energy only makes up a fraction of the state’s overall energy production. But despite Mississippi’s overwhelming reliance on more traditional sources of energy, the state is interested in lessening its carbon footprint. Below is an overview of the Mississippi grid.

Traditional sources of energy

The Mississippi grid is characterized by a diverse mix of energy sources and a significant reliance on natural gas. In 2021, natural gas accounted for 72% of the state’s electricity generation, making it the primary fuel for nine of the ten largest power plants statewide.

The Grand Gulf Nuclear Power Station in Port Gibson is the largest single-reactor nuclear power plant in the United States. It produced 17% of the state’s electricity in 2021. Coal made up 8% of the state’s energy production that year.

The state has a notable presence in the oil industry, with three refineries capable of processing 394,000 barrels of oil per day. Chevron’s Pascagoula refinery is the tenth largest in the nation. Despite this, petroleum accounts for about one-third of the energy consumed in Mississippi. The state is among the top five for the lowest average gasoline prices but ranks in the top ten for the highest gasoline expenditures per capita.

Green sources of energy

Renewable energy in Mississippi is still developing, with biomass being the most significant contributor, accounting for nearly three-fourths of the state’s renewable electricity creation. Solar energy, although only contributing 0.6% to the state’s net electricity generation, has seen significant growth, with capacity quadrupling between 2017 and 2020.

In 2021, renewable energy made up approximately 3% of the state’s energy production. The state is ranked 36th in the nation for installed solar capacity and 30th for projected growth over the next five years.

Workforce

Mississippi’s energy workforce includes 25,594 traditional energy workers, representing 3% of the state’s total employment. In 2021, the state ranked 35th nationally for clean energy jobs, with 18,750 employed in the industry. The majority of these jobs were in energy efficiency, followed by renewables and clean vehicles.

Volunteers bring solar power to Hurricane Helene’s disaster zone

Usage totals for state agencies

In Fiscal Year 2024, electricity accounted for 85% of the total energy costs among all state entities. Natural gas made up the remaining 15%. Electricity consumption decreased by 1.6%, while natural gas consumption increased by 1.3%. Despite the increase in natural gas usage, its overall cost decreased by 26.4%.

The total energy expenditure this fiscal year was approximately $122.5 million, with state universities being the largest energy consumers, accounting for 54% of the total energy costs. Other significant energy users include community colleges, healthcare agencies, and the Department of Finance and Administration (DFA) Capitol Facilities.

DFA’s Office of Capitol Facilities achieved significant energy savings by replacing inefficient lighting with LED technology, resulting in an 88% improvement in electrical efficiency. Similarly, the Mississippi Industries for the Blind implemented a comprehensive lighting upgrade, saving an estimated $37,300 annually in energy and maintenance costs.

The state anticipates a slight overall increase in energy costs by 1.9%, primarily due to expected increases in electricity prices. The U.S. Energy Information Administration forecasts a 3.3% increase in electricity prices and a 6.4% decrease in natural gas prices.

Future of Mississippi energy

Grid modernization is a key focus for Mississippi, with efforts to incorporate digital technologies that enable better management of the grid and provide consumers with more choices. The Mississippi Public Service Commission’s Integrated Resource Planning and Reporting requires utilities to file an Annual Energy Delivery Plan detailing current grid modernization efforts.

The Infrastructure Investment and Jobs Act of 2021 provides significant federal funding for grid modernization projects, including grants for enhancing electric infrastructure resiliency, transmission development, and the Smart Grid Investment Matching Grant Program.

Energy efficiency and beneficial electrification are important components of Mississippi’s energy strategy. The state has taken steps to incorporate energy efficiency into its built environment through building codes, appliance efficiency standards, and energy-saving performance contracts.

Electrification of the transportation sector is another area of focus, with efforts to develop charging infrastructure and provide incentives for electric vehicle adoption. Mississippi utilities are part of the National Electric Highway Coalition, working to coordinate EV charging infrastructure deployment.

Conclusion

Overall, Mississippi’s energy grid is evolving with a mix of traditional and renewable energy sources, efforts towards grid modernization, and policies aimed at increasing energy efficiency and renewable energy adoption. The state faces challenges but also has opportunities to enhance its energy infrastructure and support a transition to a more sustainable energy future.

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