Mercedes Mullins
Nevada has a limited amount of fossil fuel resources, producing small amounts of natural gas and crude oil, and no coal mining. Most of Nevada's power plants are natural gas-fired, with natural gas fuelling 53% of the state's electricity generation in 2024. The state also imports natural gas from neighbouring states and coal from Arizona and Utah. Nevada's crude oil production has declined over the years, with the state producing less than 140,000 barrels in 2024. The transportation sector consumes most of the petroleum products in Nevada, with the residential, commercial, and industrial sectors also contributing to energy consumption. The state has avoided some costly energy policies but is an observer of the Western Climate Initiative, targeting greenhouse gas reductions.
| Characteristics | Values |
|---|---|
| Fossil fuel resources | Nevada has few fossil fuel resources and does not mine any coal. |
| Crude oil production | In 2024, Nevada produced less than 140,000 barrels, down from a peak of over 4 million barrels in 1990. |
| Crude oil reserves | Nevada does not have any significant crude oil reserves. |
| Crude oil refinery | Nevada has one crude oil refinery, which can process about 2,000 barrels of crude oil per day and produces asphalt and road oil. |
| Petroleum products | Nevada's transportation sector consumes most of the petroleum products, with 87% of petroleum consumed in 2023 going to this sector. |
| Natural gas | Natural gas fuels the largest share of Nevada's electricity generation, with 53% in 2024. |
| Coal | Coal fueled about 5% of Nevada's electricity generation in 2024, down from over 52% two decades earlier. |
| Solar | Solar provided 31% of Nevada's total electricity generation in 2024, and there are over 30 proposed solar projects as of 2023. |
| Geothermal | Nevada accounted for 25% of the nation's utility-scale electricity generation from geothermal energy in 2024 and is the second-highest producer after California. |
| Hydroelectric | The Hoover Dam supplied about 3% of Nevada's electricity generation in 2024 and is the second-largest operating power plant in the state. |
| Energy consumption | Nevada consumes over 11 times more energy than it produces and has the sixth-lowest energy production among states. |
| Energy efficiency | Nevada requires new residential and commercial buildings to meet energy efficiency standards, such as the International Energy Conservation Code (IECC). |
| Greenhouse gas emissions | Nevada does not cap greenhouse gas emissions but is an observer of the Western Climate Initiative, targeting a 15% reduction by 2020. |
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What You'll Learn
Fossil fuel resources are limited in Nevada
Nevada's crude oil production has been in decline since the 1990s, when it reached a peak of over 4 million barrels per year. By 2024, the state's annual production had fallen to below 140,000 barrels, and there is only one oil refinery in Nevada, which produces asphalt and road oil. The state relies on additional petroleum products from out of state, with Las Vegas and Reno receiving motor gasoline and diesel fuel from refineries in Utah, California, and other neighbouring states.
Nevada's largest power plant by capacity and generation is natural gas-fired, and 8 of the state's 10 largest power plants by capacity are also natural gas-fired. The state's largest generating plant, the 1,100-megawatt Chuck Lenzie Generating Station near Las Vegas, uses high-efficiency natural gas combined-cycle technology and recycles three-fourths of the water it uses.
While fossil fuel resources are limited in Nevada, the state has been increasing its use of renewable energy sources. In 2024, solar power provided 31% of the state's total electricity generation, while geothermal energy accounted for 8% and hydroelectric power 3%.
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Natural gas is imported from neighbouring states
Nevada's largest power plant by capacity and generation is natural gas-fired, and natural gas fuels the largest share of Nevada's electricity generation. In 2024, natural gas fuelled 53% of Nevada's total in-state electricity generation, though this was the smallest share in the past 19 years. Despite this, Nevada produces only a small amount of natural gas and does not mine any coal. As such, natural gas is imported from neighbouring states, including Utah and other Rocky Mountain states.
Nevada's crude oil production has also been in decline, reaching a peak of over 4 million barrels per year in 1990, but falling to less than 140,000 barrels in 2024. The state has one crude oil refinery, which produces only asphalt and road oil. Additional petroleum products are imported from out of state, with Las Vegas receiving motor gasoline and diesel fuel by pipeline from Utah and Southern California, and the Reno area receiving petroleum products from Northern California.
The transportation sector consumes most of the petroleum products used in Nevada. In 2023, about 87% of the petroleum consumed in the state went to this sector. Federal regulations require the use of oxygenated motor gasoline in the Las Vegas and Reno metropolitan areas during the winter months, with a reduced-volatility blend used in the summer in Washoe County to lower emissions. Ethanol, used as an oxygenate for motor gasoline, is shipped into the state by rail and blended with motor gasoline at Nevada's petroleum product terminals.
Nevada has thus far avoided some of the costly energy policies implemented by other states, and does not cap greenhouse gas emissions. However, it is an observer of the Western Climate Initiative, which aims to reduce greenhouse gas emissions by 15% below 2005 levels by 2020.
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Coal-fired power plants are being phased out
Nevada consumes far more energy than it produces, as it does not mine coal and produces only small amounts of natural gas and crude oil. Coal-fired power plants are being phased out in Nevada and across the world, as countries transition to cleaner sources of energy. Coal is the most carbon-intensive fossil fuel, and phasing it out is critical to limiting climate change as outlined in the Paris Agreement.
In 2024, coal fuelled about 5% of Nevada's total electricity generation, down from over 52% two decades earlier. The state's two remaining coal-fired power plants are scheduled to be converted to natural gas by 2026. One of these plants, the TS Power Plant, owned by Nevada Gold Mines, began operating in 2008 and provides electricity to gold and copper mining operations in the desert near Elko. In 2022, NGM announced it would be converting the plant to natural gas and developing a 200-megawatt solar facility with battery energy storage on the same site, which was completed in 2024.
The phase-out of coal is well underway in many countries. In 2014, Ontario became the first jurisdiction in North America to eliminate coal in electricity generation. Germany, the largest country to transition away from coal so far, is due to shut down its last coal-fired power station between 2035 and 2038. Other countries that are rapidly phasing out coal include Greece, the UK, Denmark, Spain, Portugal, Israel, Romania, the US, and Chile.
The health and environmental benefits of phasing out coal far outweigh the costs. However, there is much disagreement about how quickly it should be phased out. Some countries, like China and India, continue to burn large amounts of coal. Nevertheless, the trend is clear: coal-fired power plants are being phased out in favour of cleaner and more economically competitive sources of energy.
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Solar energy is on the rise in Nevada
Nevada, also known as the Silver State, is rich in renewable energy resources. The state has abundant open land areas and some of the best solar potential in the country.
Solar power in Nevada is growing due to a renewable portfolio standard that requires 50% renewable energy by 2030. The number and size of photovoltaic power stations in Nevada have been growing rapidly since 2010. As of 2018, the largest is the 552 MW Copper Mountain Solar Facility near Boulder City, which is a group of co-located units, each sized up to 250 MW. Another 250 MW unit has been approved for construction and could make it the largest solar facility in the United States.
As of February 2022, there were 26 large proposed projects in Nevada, totaling over 21 GW of capacity, or five times the state's existing solar capacity. Half of these were proposed in Nye County and would be enabled by two new transmission lines.
In 2024, renewable energy resources accounted for 43% of Nevada's total in-state electricity net generation. Utility-scale solar and small-scale solar photovoltaic (PV) together supplied about 31% of the state's total generation, while geothermal energy provided 8% and hydroelectric power 3%.
Solar energy is indeed on the rise in Nevada, with the state leading the nation in solar power potential and ranking sixth in total solar capacity and fifth in solar generation. Since 2016, the share of Nevada's in-state electricity generation from all solar sources has more than tripled.
Nevada has long been a top state for solar, with numerous utility-scale, residential, and commercial solar projects. The state is also a leader in storage deployments, with utility, legislative, and regulatory actors working together to create a booming market with ample funding and incentive opportunities.
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Nevada's energy efficiency standards
Nevada's energy profile is largely characterised by its consumption of natural gas, which fuels the largest share of the state's electricity generation. In 2024, natural gas accounted for 53% of Nevada's total in-state electricity generation, marking the fuel source's smallest share in the past 19 years. In contrast, Nevada produces only small amounts of natural gas and crude oil and does not mine any coal. This disparity between energy consumption and production is significant, with the state consuming over 11 times more energy than it produces.
The residential sector consumes almost a quarter of the total energy used in Nevada, while the industrial sector accounts for one-fifth, and the commercial sector uses less than one-fifth. Notably, despite the heavy use of air conditioning during long, hot summers, Nevada's per capita energy consumption is lower than in three-fourths of the states. The state's energy consumption per dollar of GDP is also below the national average.
In terms of energy efficiency standards, Nevada has taken several steps to improve its energy efficiency and promote the use of renewable energy sources. The state's first energy code, "Energy Conservation Standards for New Building Construction," was adopted on January 1, 1978, and was enforced by all cities and counties. This code aimed to establish energy conservation standards for new building construction. However, between 1983 and 1986, the state did not actively support or enforce this energy code.
In recent years, Nevada has made more concerted efforts to enhance its energy efficiency standards. On November 10, 2011, the Nevada State Office of Energy adopted the 2009 IECC (International Energy Conservation Code), demonstrating a commitment to updating its energy efficiency regulations. Additionally, Assembly Bill 3 was enacted, enforcing the adoption of regulations for energy conservation in buildings and establishing procedures for the adoption of building energy codes.
Nevada has also shown support for renewable energy initiatives. In 2018, the state's voters advanced Question 6, a renewable energy standards initiative, by a significant margin. This initiative aimed to increase the state's renewable portfolio standards (RPS) to 50% by 2030, including sources such as solar, geothermal, wind, biomass, and hydroelectric. While facing some opposition, the initiative reflected Nevada's recognition of the importance of transitioning towards cleaner energy sources.
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Frequently asked questions
Nevada has very few fossil fuel resources. It has only a small amount of natural gas and crude oil, and no coal reserves.
Nevada's electricity generation comes primarily from natural gas, with solar power and coal also contributing significantly. The state also generates electricity from geothermal energy and hydroelectric power.
Fossil fuels, particularly natural gas, play a crucial role in Nevada's economy. The state's largest power plant by capacity and generation is natural gas-fired. However, Nevada consumes far more energy than it produces, which may impact energy costs.
Nevada has implemented several initiatives to reduce its reliance on fossil fuels, including converting coal-fired power plants to natural gas and developing solar energy projects. The state also requires new buildings to meet energy efficiency standards and has mandated the use of clean-burning gasoline blends in certain metropolitan areas.
Nevada has avoided some of the costly energy policies implemented by other states, and it does not cap greenhouse gas emissions. However, the state is an observer of the Western Climate Initiative, which aims to reduce greenhouse gas emissions.
