Molly Ayala
Colorado's electricity generation has evolved over the years, with a growing focus on renewable energy sources. In 2024, renewable sources, primarily wind power, accounted for 43% of the state's net electricity generation. Coal-fired power plants, once the dominant source, have declined from 60% a decade ago to 27% in 2024. Natural gas consumption for electricity generation has increased in recent years, and Colorado remains a top producer of coalbed methane. Solar energy is also gaining traction, with large-scale fields being installed and an increasing number of households adopting solar roofing. The state's power plant operators are committed to transitioning to natural gas and renewable energy sources, with plans to retire coal-fired capacity.
| Characteristics | Values |
|---|---|
| Total summer capacity | 18,084 MW |
| Yearly net generation in 2022 | 58,407 GWh |
| Electrical energy generation mix in 2024 | 30.4% natural gas, 30% wind, 28.1% coal, 8.4% solar, 2.9% hydroelectric, and 0.1% biomass |
| Net generation from small-scale solar in 2024 | 2,036 GWh |
| Coal-fired power plants as a percentage of total in-state generation in 2024 | 27% |
| Coal-fired power plants as a percentage of total in-state generation in 2014 | 60% |
| Rank in coalbed methane production | 1st |
| Share of U.S. coalbed methane production in 2023 | 1/3rd |
| Consumer of natural gas with the highest demand in 2024 | Electric power sector |
| Percentage of natural gas demand by the electric power sector in 2024 | 33% |
| Rank in total energy production | Top 10 |
| Per capita total energy consumption | Lower than two-thirds of the states |
| Renewable sources of energy as a percentage of total in-state electricity net generation in 2024 | 43% |
| Wind power as a percentage of renewable generation in 2024 | 67% |
| Rank in estimated recoverable coal reserves | 8th |
| Nuclear power plants in Colorado | None |
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What You'll Learn
Renewable energy sources
Colorado's electricity generation from renewable energy sources has been steadily increasing. In 2024, renewable sources of energy accounted for a record-high 43% of Colorado's total in-state electricity net generation, with wind power accounting for 67% of renewable generation. The state's use of wind power more than doubled between 2014 and 2024, and Colorado is ranked 6th in the country for wind generation.
Colorado also generates a significant amount of solar energy. In 2023, the state generated 5,310 GWh of solar energy, up from 606 GWh in 2014. This increase in solar power generation has allowed Colorado to power an additional 1,236,586 households each year with clean energy. Small-scale solar, including customer-owned photovoltaic panels, delivered an additional net of 2,036 GWh to Colorado's electricity grid in 2024. Hydroelectric power accounted for 6% of the state's renewable energy generation in 2024, and biomass less than 1%.
Colorado's renewable energy portfolio also includes natural gas. In 2024, natural gas-fired power plants accounted for 29% of the state's total electricity net generation, surpassing coal-fired generation for the first time. The electric power sector is the largest consumer of natural gas in Colorado, accounting for 33% of the state's natural gas demand.
Colorado has made significant strides in transitioning to clean energy. In 2004, it became the first state with a voter-approved renewable portfolio standard (RPS), requiring 30% of electricity sold by investor-owned utilities to be generated from renewable energy sources. The state has also set ambitious targets for reducing greenhouse gas emissions, aiming for a 26% reduction by 2025, 50% by 2030, and 90% by 2050 from 2005 levels.
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Coal-fired power plants
In 2024, coal-fired power plants accounted for 28.1% of Colorado's total in-state generation, a notable decrease from 60% just a decade prior. The state has been actively transitioning away from coal, with coal-fired power plants scheduled for closure or conversion to natural gas.
Colorado ranks eighth in the United States for its estimated recoverable coal reserves, with mining operations in the Green River, Piceance, and San Juan Basins. Historically, the coal extracted from these mines was almost entirely used for electricity generation. However, the market for Colorado coal has diminished, leading to the closure of several mines as the share of coal-fired power plants in the state's energy mix declines.
In 2019, eight coal-fired power plants were operational in Colorado. However, one plant in Nucla closed in 2019, and another in Colorado Springs converted to natural gas before shutting down in 2022. As of 2024, about a third of Colorado's electricity is still generated by the remaining 10 coal-fired power plants. These plants are expected to be phased out or converted by the end of 2031, with the closure of Xcel's Comanche 3 plant marking the end of coal-fired power in the state.
The transition away from coal in Colorado is driven by economic factors, the declining cost of renewable energy sources, and stricter environmental regulations. As coal-fired power plants are retired, they are being replaced by generating capacity fueled by natural gas and renewable energy sources. This shift poses challenges to workers and communities reliant on the coal industry, leading to the establishment of the Office of Just Transition and the Just Transition Advisory Committee to facilitate a fair transition for those impacted.
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Natural gas
Colorado has abundant fossil fuel reserves and renewable energy resources. The state ranks among the top 10 states in total energy production. In 2024, renewable sources of energy accounted for 43% of Colorado’s total in-state electricity net generation, with wind power accounting for 67% of renewable generation. The state's per capita total energy consumption is lower than two-thirds of the states.
Colorado has the eighth-largest natural gas reserves in the United States, constituting about 3% of the country's total. The state is also the eighth-largest producer of natural gas. At the end of 2019, Colorado held 24,115 billion cubic feet (Bcf) of proven natural gas resources. In 2020, 36 counties produced natural gas, resulting in approximately 2,064 Bcf of natural gas output, including coalbed methane. Weld County was the largest producer, yielding around 953.8 Bcf, followed by Garfield County with roughly 424.9 Bcf.
Coalbed methane, also known as coalbed methane gas or coalbed methane production (CBM), is a type of natural gas extracted from coal seams. Colorado is the leading producer of coalbed methane gas in the United States, contributing about one-third of the nation's production in 2023. The San Juan and Raton Basins in southern Colorado are the primary sources of the state's coalbed methane. In 2020, CBM accounted for approximately 11% of Colorado's natural gas production.
The Denver-Julesburg Basin in the northeast and the Piceance Basin in the west are Colorado's largest natural gas-producing regions. The Denver-Julesburg Basin produces higher-value crude oil and natural gas liquids, while the Piceance Basin primarily yields dry natural gas. The San Juan Basin, straddling the Colorado-New Mexico border, is another significant natural gas-producing area, although its output has declined in recent years.
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Solar energy
Colorado has a diverse energy mix, with renewable sources accounting for 43% of the state's total in-state electricity net generation as of 2024. Solar energy plays a significant role in this mix, contributing 8.4% of the state's electricity generation in the same year. The state has over 300 sunny days per year, making it an ideal location for harnessing solar power.
Colorado was one of the first states in the US to implement a Renewable Energy Standard. The state offers various solar programs, including rooftop solar, community solar, and utility-scale solar initiatives. Organizations like the Solar Energy Industries Association (SEIA) actively advocate for solar energy adoption and storage growth in the state.
The Colorado Solar for All (COS4A) program is a notable initiative aimed at accelerating the adoption of rooftop and community solar projects. Funded by a $156 million grant from the US Environmental Protection Agency (EPA), the program aims to increase access to solar energy for low-income residents, improve air quality, reduce energy bills, and enhance the state's energy independence.
Incentives and financial programs also play a crucial role in promoting solar energy in Colorado. Net metering policies allow homeowners with solar panel systems to earn credits for the excess energy they produce, significantly reducing their electric bills. Additionally, the state offers tax credits, utility rebates, and solar loans to encourage the adoption of solar technology.
Colorado's commitment to solar energy is evident through its legislative and regulatory efforts. The state has established robust consumer protection laws, such as SB18-009, which grants utility customers the right to an expedited interconnection process for residential storage systems. As of July 2023, Colorado had 237 MW of energy storage capacity, with financial incentives further driving the growth of the solar storage market.
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$11.47 $13.99
Hydroelectric power
In 2024, hydroelectric power accounted for 2.9% of Colorado's electricity generation mix. The state's hydroelectric power is generated through various facilities and projects.
The Upper Colorado Basin Region's Power Office, located in Salt Lake City, Utah, oversees four field offices associated with primary Colorado River Storage Project (CRSP) and the Rio Grande hydroelectric power generation facilities. These include:
- Glen Canyon Field Division in Page, Arizona
- Curecanti Field Division in Montrose, Colorado
- Flaming Gorge Field Division in Dutch John, Utah
- Elephant Butte Field Division in Truth or Consequences, Mexico
The Power Office is responsible for operating and maintaining the CRSP hydroelectric power plants and dams, which include:
- Flaming Gorge on the Green River near Dutch John, Utah
- Blue Mesa, Morrow Point, and Crystal on the Gunnison River near Montrose, Colorado
- Glen Canyon on the Colorado River near Page, Arizona
The Power Office also operates and maintains facilities at other Reclamation projects, including:
- Fontenelle Dam and Power Plant on the Green River near Kemmerer, Wyoming
- Upper and Lower Molina Power Plants near Grand Junction, Colorado
In addition, the Western Area Power Administration's (WAPA) CRSP Management in Salt Lake City markets power from CRSP power resources and hydroelectric power plants of the Collbran and Rio Grande projects. These are collectively known as the Salt Lake City Area Integrated Projects (SLCA/IP). The SLCA/IP is part of an interconnected generation and transmission system that includes federal, public, and private power-generating facilities.
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Frequently asked questions
As of 2024, the main sources of electricity in Colorado were natural gas (30.4%) and wind (30%), followed by coal (28.1%), solar (8.4%), hydroelectric (2.9%), and biomass (0.1%).
As of December 2022, Colorado had a total summer capacity of 18,084 MW through all of its power plants, and a year-long net generation in 2022 of 58,407 GWh.
In 2024, renewable sources of energy accounted for 43% of Colorado's total in-state electricity net generation, with wind power accounting for 67% of renewable generation.
No, Colorado does not have any nuclear power plants for commercial electricity generation. The Fort St. Vrain Nuclear Power Plant operated from 1976 to 1989 but was decommissioned and removed of its nuclear components by 1992.
Colorado ranks among the top 10 states in total energy production, and its per capita total energy consumption is lower than two-thirds of the states.
