Umair Gaines
Alabama ranks sixth in the US for electricity production and its electricity consumption per capita is the seventh-highest in the nation. The main fuel type used for electricity production in Alabama is natural gas, making up 44% to 46.38% of the fuel used in the state. Nuclear power is the second-largest source of electricity, making up 29.83% to 31.1% of the state's electricity production. Alabama also produces electricity from coal (14.6% to 14.76%), hydroelectric power (6.1%), biomass (2.3%), and solar power (0.9% to 6.1%).
| Characteristics | Values |
|---|---|
| Rank in electricity production | 6th |
| Total electricity consumption per capita rank | 7th |
| Total summer capacity in 2023 | 31,097 MW |
| Net generation in 2024 | 139,435 GWh |
| Electrical energy generation mix in 2024 | 45.1% natural gas, 31.1% nuclear, 14.6% coal, 6.1% hydroelectric, 2.3% biomass, 0.9% solar |
| Rank in net solar power generation | 27th |
| Number of public electric vehicle charging locations in 2024 | 440 |
| Number of electricity providers | 61 |
| Average electric bill in 2025 | $179 |
| Average energy loss | 4.52% |
| Main fuel type used for electricity production | Natural gas (46.38%) |
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What You'll Learn
Alabama's electricity exports and imports
Alabama's electricity production ranks sixth among US states, while its total electricity consumption per capita is the seventh-highest in the nation. Alabama's energy mix in 2024 comprised 45.1% natural gas, 31.1% nuclear, 14.6% coal, 6.1% hydroelectric, 2.3% biomass, and 0.9% solar.
Alabama consumes over 80% more energy than it produces. The state's natural gas production meets about one-eighth of its gas demand, with additional supplies coming from interstate pipelines. More than four-fifths of the natural gas that enters Alabama continues on to other states, particularly Georgia, Florida, and Mississippi. Natural gas has been the largest source of electricity in Alabama since 2014, accounting for 44% of the state's net generation in 2023.
Alabama is the fourth-largest producer of electricity from nuclear power in the US. The Browns Ferry Nuclear Plant is the nation's second-largest nuclear-generating facility and the third-largest by net summer capacity.
Alabama is also the fifth-largest hydroelectric power producer in the US. Twenty-three hydroelectric dams provided about 6% of the state's electricity net generation in 2023. The state is the second-largest hydroelectric producer in the eastern US, after New York.
Coal mining has been a major industry in Alabama since the 1850s, supporting the development of the state's iron and steel industry. About 90% of the coal mined in Alabama is exported, with most of it going to other countries. Alabama holds 1% of the US's economically recoverable coal reserves. The state ranked 11th in the nation in total coal production and 6th in bituminous coal output. Bituminous coal is used for electricity generation and steel production. Nearly three-fifths of the coal used in Alabama is burned at power plants to generate electricity.
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Coal and its use in Alabama
Alabama has been commercially mining coal since the 1850s. The industry has had its ups and downs, but it has significantly impacted the state's economy, geography, society, politics, and culture. Coal mining was the catalyst for Alabama's transition from an agricultural economy to an energy-producing and export-based economy.
Coal is a crucial energy source in Alabama, contributing to 14.6% of the state's electrical energy generation mix in 2024. About 10% of the coal mined in Alabama is used within the state, with nearly three-fifths of that amount burned at power plants to generate electricity. The remaining coal is exported, with the Port of Mobile serving as the largest port for handling coal imports and exports. Alabama is ranked 14th in total coal production and 8th in bituminous coal production in the US. The state holds approximately 4 billion tons of economically recoverable coal reserves, with an estimated 85% being metallurgical (met) coal.
Met coal is less abundant and more valuable than thermal coal worldwide. Alabama's met coal is unique due to its very low sulfur content and strong coking properties, making it ideal for steel production. In 2018, Alabama produced an estimated 11 million tons of met coal, valued at $2 billion. The majority of this met coal was exported to steelmakers in Europe, Asia, and South America. Warrior Met Coal, Peabody Energy, and Murray Energy Corp are the top three producers, collectively responsible for over 95% of the state's met coal output.
Coal mining in Alabama has evolved over time, with the introduction of mechanized techniques and the shift from underground mining to surface mining methods such as strip mining. Modern coal mining in the state utilizes advanced longwall mining technology, which is safer and more efficient than traditional methods. The average salary for an underground miner in Alabama's met coal industry starts at $85,000 and increases to over $100,000 after two years of experience. The coal industry in Alabama provides high-paying jobs, with an average payroll of over $100,000 per annum, contributing significantly to the state's economy.
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Natural gas and its role in electricity generation
Natural gas is a fossil fuel that is used to generate electricity. It is a significant source of energy, powering machines, lights, and everything that requires electricity. In the process of electricity generation, natural gas is extracted from underground sources and transported via pipelines to power plants. At the power plants, the gas is burned to create steam or drive turbines, ultimately producing electricity through electromagnetic induction. This process is highly effective due to the energy density of natural gas, which means a relatively small amount can produce a significant amount of electricity.
In the context of Alabama, natural gas has played a crucial role in electricity generation. In 2023, natural gas accounted for 44% of the state's net generation of electricity, making it the largest source of electricity in the state. Alabama's natural gas production meets about one-eighth of the state's gas demand, with the remaining supplied through interstate pipelines. The electric power sector is the largest consumer of natural gas in Alabama, receiving 62% of total deliveries in 2023.
Natural gas is favoured for electricity generation due to its reliability, affordability, and cleanliness compared to other fossil fuels. It emits less carbon and fewer greenhouse gases than other fossil fuels, making it a preferred transitional fuel towards more sustainable energy sources. Additionally, natural gas power plants can be quickly turned on and off, making them ideal for responding to seasonal and short-term demand fluctuations.
However, it is important to acknowledge that natural gas is still a fossil fuel, contributing to carbon dioxide emissions. As a result, natural gas is increasingly being used in conjunction with renewable energy sources such as wind and solar power. When the wind is not blowing or the sun is not shining, natural gas serves as a backup to ensure a consistent power supply. This complementary relationship between natural gas and renewables is particularly evident in Alabama, where natural gas and nuclear power are the leading sources of electricity generation.
In summary, natural gas plays a significant role in electricity generation, both in Alabama and globally. Its energy density, affordability, and reliability make it a favoured choice for power production. However, the transition to more sustainable energy sources highlights the need to reduce reliance on natural gas and utilise it more effectively in combination with renewable alternatives.
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Nuclear power and its contribution to electricity
Alabama is the fourth-largest producer of electricity from nuclear power in the United States. The state's two nuclear power plants, with a total of five reactors, produced 33% of the electricity generated in Alabama in 2023. The Tennessee Valley Authority's Browns Ferry Nuclear Plant in Athens is the third-largest nuclear power plant in the country, with nearly 3,700 megawatts of combined generating capacity across its three reactors. Browns Ferry celebrated its 50th anniversary in 2024 and can produce enough power for more than 2 million homes and businesses.
Alabama Power's Farley Nuclear Plant, which generates 18% of the utility's electricity, is the state's second nuclear power plant. It is located near Dothan and has been operational since 1977. Together, Browns Ferry and Farley nuclear plants contributed significantly to Alabama's electricity production, providing a large portion of the state's carbon-free energy.
Nuclear power is a vital component of Alabama's energy mix, and the state has invested in maintaining and upgrading its nuclear facilities. The Tennessee Valley Authority (TVA), which operates Browns Ferry, has committed significant funds to strengthening the power grid and ensuring the continued safe operation of the plant. These upgrades are essential to meet the region's growing energy demands and maintain energy security.
While nuclear power plays a significant role in Alabama's electricity generation, other sources also contribute to the state's energy portfolio. Natural gas has been the largest source of electricity in Alabama since 2014, accounting for 44% of the state's net generation in 2023. Additionally, Alabama is a significant producer of hydroelectric power, with 23 hydroelectric dams providing about 6% of the state's net generation. The state also generates electricity from biomass, coal, and renewable sources like solar and wind, although to a lesser extent.
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Solar power and its potential in Alabama
Alabama has traditionally relied on coal, natural gas, nuclear power, and hydroelectric power for its energy needs. However, with a growing national and global shift toward clean energy, solar power presents an opportunity for Alabama to diversify its energy portfolio and emerge as a leader in renewable energy production.
Solar power is a clean, renewable, and emission-free energy source that converts sunlight directly into electricity using solar or photovoltaic (PV) cells arranged in panels or modules. In Alabama, solar power currently accounts for only a small fraction of the state's energy mix, with neighboring states investing more significantly in solar infrastructure. However, Alabama has the potential to become a significant player in solar energy production due to several factors.
Firstly, Alabama experiences an abundance of sunshine, averaging over 210 sunny days per year. This provides a reliable natural resource for solar energy generation. Additionally, Alabama has favorable climate conditions and high levels of sunlight, further enhancing its potential for solar power.
Secondly, by harnessing solar energy, Alabama can reduce the cost of power for consumers. Solar energy technology costs have decreased, and efficiency has improved, making it increasingly competitive with traditional forms of energy generation. Utility-scale solar projects offer cost savings due to economies of scale. Investing in large-scale solar farms could provide Alabama's residents and businesses with access to cheaper electricity, reducing financial burdens and fostering a more competitive business environment.
Finally, Alabama has the opportunity to attract new industries, create jobs, and stimulate economic growth by embracing solar power. By becoming a leader in solar energy production, the state can position itself as a net energy exporter, supplying neighboring states with excess solar power.
To realize its potential in solar energy, Alabama is taking steps to advance the use of solar technology, such as exploring the pairing of batteries with solar installations to improve reliability and address the challenges of renewable energy storage. Additionally, Alabama Power is researching new and more efficient ways to harness solar energy, and the state is investing in electric vehicle charging infrastructure, further supporting the transition to clean energy.
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Frequently asked questions
The main fuel types used for electricity generation in Alabama are natural gas, nuclear, and coal, making up 46.38%, 29.83%, and 14.76% of the fuel used in the state, respectively.
Alabama ranks sixth in the nation for electricity production and seventh for total electricity consumption per capita.
Alabama Power is the largest electricity supplier in Alabama by total revenue.
Alabama is the second-largest hydroelectric producer in the eastern US, with hydroelectric power accounting for 6.1% of its electricity generation in 2024. The state also has a notable solar power generation capacity, ranking 27th in the US.
Alabama residents pay on average about 21.45% more than the nationwide average for electricity. In 2025, the average electric bill in Alabama was $179.
