Diversifying away from coal and natural gas in rural Iowa

(KMAland) — Rural Iowans face rising energy costs as winter sets in. While utility companies continue to look for alternatives to coal for home heating, research shows there are market factors that could increase rates for natural gas customers.

Natural gas accounts for about 30% of Iowa’s energy consumption. As utilities move away from coal and construct more natural gas plants, Andrew Johnson, executive director of Clean Energy Districts of Iowa, said the shift could lead to higher prices.

“That demand for electricity plus the growing demand for exports, we worry, could significantly outstrip the growing supply,” said Johnson, “then you have the supply and demand problem.”

Johnson said utilities are also considering renewable energy sources like wind and solar to meet the state’s electricity needs.

Iowa already leads the nation in the percentage of power created by wind, which is especially helpful in rural areas, where there’s more land available for wind farm construction.

Despite Iowa’s abundance of wind power, the state’s natural gas prices are still tenth highest in the nation. Johnson said even though utility companies are building more plants, gas distribution infrastructure is limited.

“So, even if there is theoretical supply at the fracking fields and whatnot,” said Johnson, “we can’t get that much larger volume of gas to some parts and places of the country and the state.”

Johnson said the demand, price hikes, and limited infrastructure threaten to not only drive up energy prices, but also stifle economic growth across Iowa and the country.