South Dakota is a net exporter of energy. The State generates more electricity, through five prominent generation methods, than is consumed.
Coal
Hydroelectric
Natural Gas
Petroleum
Wind/Solar
SCOPE This section summarizes the existing electrical generation, transmission, and distribution infrastructure for the State of South Dakota. This incorporates identification of existing power generation facilities, substations, and the pathways of delivering power including high voltage transmission lines. Major stakeholders such as energy providers were identified and consulted. Constraints and factors that impact the present status of power generation and distribution and the role they have in economic development were explored. Parameters and predictions relating to future economic growth and development were analyzed. A list of options that can be taken to achieve goals, a professional opinion on the viability of each option, and final recommendations on which options to pursue are included.
Based on 2023 data from the U.S. Energy Information Administration (EIA), hydroelectric, wind/solar, coal, and natural gas were the most utilized sources for energy production in the State. Petroleum, biomass, and solar sources played an insignificant role in annual production. Western South Dakota has one sizable facility sourced by natural gas, while the eastern portion of the State has significantly more facilities. Residential (40%) and commercial (37%) sectors accounted for most of the State's 2023 electrical sales. Industrial accounted for most of the remaining power. South Dakota has a higher consumption rate per customer than other states. Future industrial expansions will be limited to geographies with electrical infrastructure capable of reliable power delivery. As the country moves toward net-zero emissions and away from fossil fuels, the demand on the electric grid is expected to increase. Approximately 89% of South Dakota is farmland. The continued increase in the electrification of cars, commercial vehicles, and ag machinery will increase the demand on the electrical infrastructure capacity. Equipment manufacturers are exploring the implementation of electric powered machines, such as combines and tractors, to meet nationwide carbon-free mandates. Electric passenger vehicle usage is expected to increase following the trend to reduce carbon emissions. As technology improves, electric vehicles may also be used for commercial and agriculture applications in the future. As more electric vehicles are introduced, there will be an increasing demand on electrical infrastructure.
36 | Electric
South Dakota Governor’s Office of Economic Development
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