Energy offers some of the greatest growth opportunities for North Dakota. Energy is the state's largest industry.

North Dakota generates over twice as much electricity as required for in-state use through a variety of energy sources. Coal, natural gas, wind, hydroelectric and other sources all contribute to a reliable supply at affordable prices to the consumer. In 2021, ND ranked 8th for lowest cost of electricity to the consumer at an average of 11.61 cents/KWH. 

COAL BASED GENERATION

North Dakota has five operational lignite coal mines providing coal directly to power plants within the state. A total of 26.6 million tons of lignite was produced in 2021, serving seven electric generation plants and one synthetic natural gas/fertilizer production facility. Lignite coal-fired power plants in North Dakota have a capacity of 4,048 MW. 

• 80% of the lignite is used directly for electricity production.
• North Dakota has the second largest reserve for lignite in the world, estimated at 25 billion tons.
• Reserves equal 800 years of current rate consumption.
• Current coal production disturbs between 1500 and 2000 acres of land annually.
• Mining companies' reclamation costs average between $30k-$60k per acre.
• Since 1975, over $1B in tax revenue has gone to the state from lignite coal severance and conversion taxes.
• 3,388 direct employees and over 11,000 indirect workers are employed by the ND Lignite Industry.
• Approximately $125 million is contributed to North Dakota through coal mine and power plant tax revenue.

PEAKER PLANTS

Natural gas and fuel oil power various peaking stations to contribute to the supply at times where demand is high and intermittent sources are not able to produce electricity. During high consumption times with limited capacity, Peaker plants minimize risk of outages across the upper Midwest region.

• Cooperatives and investor-owned utilities operate 11 different units fueled by either natural gas or fuel oil facilities.
• Peaker plants provide a combined capacity of over 640 MW of electricity.

RENEWABLE-HYDRO, WIND, SOLAR, HYDROGEN

Various renewable energy options include wind, solar, and geothermal. Wind is one of the best renewable sources as the capacity factor is over 40%. North Dakota ranks 7th for the most wind capacity with 31 percent of the electricity production coming from wind in 2020. As of 2021, over 4,000 MW of wind capacity has been installed with an interest in an additional 6,200 MW to be installed in the future. Over 2,200 wind turbines are currently operating in North Dakota. The wind industry also provides $12 million in local and state tax revenue to the state, with an additional $20-30 million in extra income to landowners. Current production tax credit (PTC) is set at 2.5 cents/kwh with a 10-year operation having been started in 2016.

The only hydroelectric power plant in North Dakota is the Garrison Dam, controlling outlet water from Lake Sakakawea to the Missouri River. Lake Sakakawea is the 3rd largest reservoir in the United States by volume. The Garrison Dam has a maximum capacity of 583 MW with five turbines. Total production by the dam in 2021 was 2 million MWhrs of electricity. All electrical sales are made through Western Area Power Administration or WAPA. Electrical sales from WAPA provide power to North Dakota, South Dakota, Minnesota, Iowa, Montana and Nebraska.

Several solar arrays have been installed, including an 8 KW system at Bismarck State College, along with a 6.6 KW system in Carrington operated by Norther Plains and Dakota Valley Electric Cooperatives. Additional solar systems are utilized in rural areas for small applications such as cattle fountains, fencing, or remote equipment power systems. 

TRANSMISSION

The North Dakota Transmission Authority was established in 2005 to accommodate new energy development. ND electric generation feeds regional transmission operators (RTOs) and independent system operators (ISOs). Transmission growth is expected to continue, revealing the need for investment to expand capacity. 

• Over 50% of North Dakota electric generation is exported for out of state users.
• Transmission line costs range from $1.5 to $2 million per mile.
• North Dakota has more than 65,000 miles of transmission and distribution lines.
• Voltage ranges from 115,000 to 750,000 volts.