Last Updated: May 16, 2024

Overview

Known as the Silver State, Nevada is rich in mineral deposits, particularly gold and silver.¹ It is also rich in renewable energy resources.² The Sierra Nevada Mountains mark the western edge of Nevada with California, and the open prairie and deep canyons of the Columbia Plateau occupy the northeastern part of the state. However, almost all of Nevada is within the Great Basin, an arid area with no outlet to the sea. The state's iconic buttes and flat-topped mesas are scattered between the mountain ranges that rise from the desert floor.^3,4 The sun-bathed desert provides Nevada with the greatest solar power potential in the nation, and the state has substantial solar energy development.⁵ Geothermal resources are also widespread in Nevada, and the state ranks second in the nation, after California, in its electricity generating capacity at geothermal power plants.^6,7,8 Although Nevada has the lowest average annual precipitation in the nation, it has one of the nation's largest hydroelectric facilities, Hoover Dam. The Dam spans the Colorado River between Nevada and Arizona and supplies the region with electricity.^9,10 Nevada's mountain slopes are home to the state's mostly juniper and pinyon pine forests, and the mountain ridges have the state's greatest wind power potential, but only a small amount of the state's electricity is generated from wind or biomass.^11,12,13 Nevada does not have any significant crude oil, natural gas, or coal reserves and has no nuclear power plants.^14,15 However, the state is the nation's only lithium producer.¹⁶ Lithium is used in the manufacturing of the rechargeable batteries used in portable electronic devices, electric vehicles, and grid storage applications.¹⁷ A northern Nevada lithium deposit is thought to be the largest in North America, and construction of an open pit mine began at that location in 2023. Numerous other lithium claims have been staked in the state.^18,19 Nevada also has deposits of 33 of the 50 minerals identified as critical minerals by the U.S. Geological Survey in 2022, which are used in the manufacture of batteries, seminconductors, solar panels, and wind turbines, among other applications.^20,21

Nevada is the largest source of gold in the United States and the state's mines account for about three-fourths of the gold produced in the nation.²² In 1859, the discovery of silver and gold drew a rush of settlers to Nevada.²³ Today, the state's population growth is among the fastest in the nation, but Nevada remains among the 10 least densely populated states.^24,25 The federal government owns about four-fifths of Nevada's land, the largest share of any state. The U.S. Bureau of Land Management manages grazing, mining, and energy development on most of those public lands.^26,27 Although mining for gold, silver, lithium, and other minerals remains important, the state's economy now includes: aerospace and defense; information technology; health; manufacturing and logistics; natural resource technologies; and tourism.²⁸ Las Vegas and Reno are tourist destinations for gaming and entertainment, and the leisure and hospitality industry is the state's largest employer.²⁹

In part because of tourism, Nevada's transportation sector accounts for more than one-third of the state's total energy consumption. The residential sector consumes one-fourth of the total energy used in the state, the industrial sector accounts for more than one-fifth, and the commercial sector uses about one-fifth.³⁰ Almost three-fourths of the state's residents live in southern Nevada in Clark County, which includes the city of Las Vegas.³¹ Despite the heavy use of air conditioning in the state during the long, hot summers, Nevada's per capita energy consumption is less than in about three-fourths of the states.^32,33,34 The amount of energy consumed for each dollar of GDP in Nevada is below the national average.³⁵ Overall, Nevada ranks eighth-lowest among the states in energy production, and uses more than six times more energy than is produced in the state.³⁶

Electricity

Natural gas fuels the largest share of Nevada's electricity generation, and 8 of the state's 10 largest power plants by capacity and 7 of the 10 largest by generation are natural gas-fired.³⁷ In 2023, natural gas fueled 56% of Nevada's total in-state electricity generation from both utility-scale (greater than 1 megawatt capacity) power plants and small-scale (less than 1 megawatt capacity) generating systems—the smallest share in the past 18 years.³⁸ Because Nevada is the driest state in the nation, minimizing the use of scarce water is a priority. 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. The facility also reduces water use with a dry-cooling system that allows the combined-cycle plant to use only 7% as much water as an equivalent conventional water-cooled power plant.³⁹

In 2023, renewable energy resources accounted for 39% of Nevada's total in-state electricity net generation. Utility-scale solar and small-scale solar photovoltaic (PV) together supplied about 26% of the state's total generation, while geothermal energy provided 10% and hydroelectric power 3%.⁴⁰ Hoover Dam, one of the nation's largest hydroelectric dams, is on Nevada's border with Arizona and has power plants in both states. It accounted for 96% of Nevada's hydroelectric power generation in 2023.^41,42,43 Wind and biomass provided the rest of Nevada's renewable generation.⁴⁴

Coal fueled about 5% of Nevada's total electricity generation in 2023, down from more than 51% two decades earlier.⁴⁵ Two coal-fired power plants have been retired in Nevada since 2012 and the two remaining coal-fired power plants are scheduled to be converted to natural gas by 2026.^46,47 One of these coal-fired power plants is an industrial facility—TS Power Plant—owned by Nevada Gold Mines (NGM). It began operating in 2008 and provides electricity to gold and copper mining operations in the desert near Elko and sells its excess generation to the regional electricity transmission company.⁴⁸ NGM announced that it would be converting the plant to natural gas and develop a 200-megawatt solar facility with battery energy storage on the same site.⁴⁹

In 2023, total electricity consumption in Nevada was nearly evenly distributed among the state's residential, industrial, and commercial sectors, and Nevada's average electricity price was less than in one-third of the states.^50,51 The residential sector, where more than one in three households use electricity for home heating and most use air conditioning, accounted for more than one-third of the state's electricity consumption.^52,53 The commercial sector, including the famously bright lights on the Las Vegas strip, used about one-third, and the industrial sector consumed slightly less than one-third. Nevada's transportation sector, which consists of light-rail, accounted for a small amount of the state's electricity consumption.⁵⁴ Nevada continues to add electric vehicle charging stations to its highway infrastructure, as a member of the Regional Electric Vehicle Plan for the West.⁵⁵ As of early 2024, there were 560 public electric vehicle charging locations in Nevada, with more than 2,000 charging ports.⁵⁶ Nevada ranks in the top 20 states with over 28,000 registered battery electric vehicles.⁵⁷

Nevada's electricity consumption sometimes exceeds in-state generation, and additional electricity supplies enter Nevada over high-voltage transmission lines from other states.⁵⁸ Prior to 2014, two separate transmission grids provided power to Nevada. The one in the southern part of the state supplied the Las Vegas area, and the one in the northern part of the state supplied many communities, including the Elko and Reno areas. In 2014, the One Nevada transmission project, which runs the length of the state in eastern Nevada, connected the two grids. Two new transmission lines, part of the Greenlink Nevada initiative, will connect to the One Nevada transmission line and will run along the north and west of Nevada.^59,60 Another large-scale transmission project in development will cross through Nevada, allowing delivery of power generated from renewable resources in Wyoming to market centers in California, Arizona, and Nevada.⁶¹

Renewable energy

In 2023, renewable energy sources generated 39% of Nevada's total electricity generation from both utility- and small-scale facilities. Utility-scale solar PV facilities generated more electricity than the state's hydroelectric plants for the first time in 2016, and more power than geothermal energy for the first time in 2017. Since 2016, the share of Nevada's in-state electricity generation from all solar sources has nearly tripled. In 2023, utility-scale and small-scale solar power—including from solar thermal power plants—provided two-thirds of Nevada's in-state generation from all renewable sources and 26% of the state's total electricity generation.⁶² Nevada leads the nation in solar power potential and ranks sixth in the nation in total solar capacity and eighth in generation.^63,64

Nevada is one of seven states with utility-scale electricity generation from geothermal energy, and the state is second only to California in geothermal-sourced power production.⁶⁵ Geothermal resources account for one-fourth of Nevada's generation from all renewable sources and about 10% of the state's total electricity generation.⁶⁶ Among the state's electricity generating facilities is a first-of-its-kind hybrid geothermal-solar power plant, which combines geothermal power with solar PV and solar thermal generation. That facility began as a geothermal power plant in 2009, and PV panels were added later, creating a baseload geothermal facility with peaking solar generation in daytime, when air conditioning demand is greatest. In 2015, the facility added a solar thermal power plant, which raises the temperature of the geothermal fluids and increases the efficiency and amount of generation from the geothermal power plant.⁶⁷

Almost all of the rest of Nevada's renewable generation comes from its hydroelectric power plants, primarily Hoover Dam, the state's third-largest power plant by capacity and seventh largest by generation in 2022.^68,69 Built in less than five years during the Great Depression, Hoover Dam has a generating capacity of about 2,080 megawatts, half of which is in Nevada and half is in Arizona. The U.S. Bureau of Reclamation operates the dam, which supplies electricity to Nevada, Arizona, and California. Hoover Dam is a National Historic Landmark.^70,71,72 In 2023, hydroelectric power generation declined by 22% in Nevada because of the drought conditions in the Western states, which has led to historically low hydroelectric generation.⁷³

Nevada's wind resource potential is on scattered mountain ridges across the state.⁷⁴ Because the federal government owns and manages 80% of the state's land, most utility-scale wind projects need federal approval.^75,76 Nevada's first utility-scale commercial wind farm opened in 2012. The 150-megawatt wind farm is the only utility-scale wind project online in the state. No new utility-scale wind projects were in development as of February 2024.⁷⁷

Nevada first enacted a Renewable Portfolio Standard (RPS) in 1997 and has modified it several times since, most recently in 2019. It now requires that at least 50% of the electricity that utilities sell to Nevada customers must be generated from renewable sources by 2030.^78,79

Petroleum

Nevada does not have any significant crude oil reserves and has only a modest amount of production.^80,81 Petroleum exploration in the state was sporadic during the past century.⁸² Nevada's crude oil production reached a high of more than 4 million barrels per year in 1990, but annual production declined rapidly after that. In 2023, the state produced less than 220,000 barrels.⁸³ Nevada has one crude oil refinery, which has a capacity to process about 2,000 barrels of crude oil per calendar day and produces only asphalt and road oil.^84,85 The state gets additional petroleum products from out of state. Las Vegas receives refined petroleum products like motor gasoline and diesel fuel by pipeline from refineries in Utah and southern California, and the Reno area receives petroleum products from refineries in northern California.^86,87 In 2022, Nevada had the fifth-highest motor gasoline price in the nation.⁸⁸

Nevada's transportation sector consumes most of the petroleum products used in the state. In 2022, 86% of the petroleum consumed in Nevada went to that sector.⁸⁹ Federal regulations require that both the Las Vegas and the Reno metropolitan areas use oxygenated motor gasoline during the winter months. Additionally, motor gasoline sold during the summer in Washoe County, including the Reno area, is a reduced volatility blend that lowers the emissions that contribute to the formation of ground-level ozone.^90,91 Ethanol is used as an oxygenate for motor gasoline, but there are no fuel ethanol plants in Nevada.⁹² Ethanol is shipped into the state by rail and blended with motor gasoline at Nevada's petroleum product terminals.⁹³ The industrial sector accounts for about 9% of Nevada's petroleum consumption. The commercial sector uses about 3% and the residential sector, where about 3 in 100 Nevada households use petroleum products, mostly propane, for home heating, accounts for almost all the rest. A small amount of petroleum is used for power generation.^94,95 On a per capita basis, Nevada uses less petroleum than more than two-thirds of the states.⁹⁶

Natural gas

Nevada has no significant natural gas reserves and only a minimal amount of natural gas production.⁹⁷ Almost all of that production comes from oil wells and is used to operate equipment in the fields where it is produced.^98,99,100 Interstate pipelines provide the vast majority of Nevada's natural gas supply. Most of the natural gas that enters Nevada comes through Utah, with smaller amounts from California and Idaho. Nevada consumers use slightly less than one-third of the natural gas that enters the state. The rest continues on, with about four-fifths going to California and one-fifth to Oregon.¹⁰¹ The electric power sector uses 65% of the natural gas delivered to Nevada consumers. The residential sector, where nearly three in five households use natural gas as their primary home heating fuel, consumes 16% of the state's natural gas deliveries. The commercial sector uses about 11% of the natural gas delivered to Nevada consumers, and the industrial sector accounts for 6%. The transportation sector uses a small amount of natural gas as compressed natural gas vehicle fuel.^102,103

Coal

There are no commercial coal deposits or coal mines in Nevada.¹⁰⁴ However, the state's two coal-fired power plants, one operated by a utility and the other an industrial facility that generates power for its own use, are both located in northern Nevada.¹⁰⁵ They are among the 10 largest power plants by generation in the state and consumed 1.3 million tons of coal in 2023.^106,107 The North Valmy Generating Station is Nevada's only remaining utility-owned coal-fired power plant. It receives coal shipped by rail from mines in Wyoming, Utah, and Colorado. The TS Power Plant, an industrial coal-fired power plant, receives the coal it needs by truck and rail from Utah.^108,109 Nevada's annual total coal consumption in 2023 was less than one-fifth the amount used in the state in 2001.¹¹⁰

Energy on tribal lands

Nevada has 19 federally recognized tribes and is home to more than 46,000 Native Americans.^111,112 There are a total of 32 reservations or tribal colonies in the state.¹¹³ The largest of the state's reservations, Walker River, covers almost a half-million acres, but most of Nevada's reservations are small. Combined, the state's tribal areas cover about 1.4 million acres in total, which is less than 2% of the state's total land area.^114,115

Tribal lands, like most of Nevada, have abundant solar resources, and solar energy is the primary renewable energy resource used by the state's tribes.¹¹⁶ Nevada's Moapa River Indian Reservation is the site of the nation's first utility-scale solar power plant built on tribal land. The 250-megawatt Moapa Southern Paiute Solar Project—located about 30 miles northeast of Las Vegas on land leased from the Moapa Tribe—became fully operational in 2017. The project's solar power is sold to the Los Angeles Department of Water and Power, and the Moapa Band of Paiutes receives revenues from the project.¹¹⁷ Two large solar projects came online on the reservation in 2023—the 300-megawatt Eagle Shadow Mountain project and the 200-megawatt Arrow Canyon Solar Project.^118,119 Another large solar project, the 300-megawatt Southern Bighorn Solar Project—on the Moapa reservation—is under development.^120,121 Other Nevada tribes also have built solar projects on their reservations.¹²² The Washoe Tribe of Nevada and California installed seven ground-mounted small-scale solar PV projects at community buildings on tribal land.¹²³ The Yerington Paiute Tribe created an energy plan and has installed solar panels as it works toward a goal of energy self-sufficiency. Ground-mounted solar panels provide power to several buildings as well as to well pumps used for irrigation and at a water treatment plant on the reservation.^124,125

Geothermal energy potential also exists on Nevada's tribal lands. The Pyramid Lake Paiute Tribe's reservation near Reno and the Walker River reservation are ranked among the top five reservations in the nation with the greatest potential for geothermal-sourced electricity generation.¹²⁶ The Pyramid Lake tribe investigated their reservation's geothermal resource potential. Although the reservation is in an area where other non-tribal geothermal power plants are located, the reservation's geothermal resources have not been developed, and there are no geothermal projects on Nevada's tribal lands.^127,128,129

Endnotes

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¹¹⁹ EDF Renewables, "EDF Renewables North America Celebrates Arrow Canyon Solar+Storage Project," Press Release (November 9, 2023).
¹²⁰ U.S. EIA, Electricity, Preliminary Monthly Electric Generator Inventory (based on Form EIA-860M as a supplement to Form EIA-860), Inventory of Operating Generators as of March 2024, and Inventory of Planned Generators as of March 2024.
¹²¹ U.S. Department of the Interior, "Interior Department Advances Two Solar Energy Projects on Tribal Lands," Press Release (July 16, 2021).
¹²² U.S. Department of Energy, Office of Indian Energy Policy and Programs, Tribal Energy Project Database, State: Nevada, accessed April 25, 2024.
¹²³ U.S. Department of Energy, Office of Indian Energy Policy and Programs, Project Reports for Washoe Tribe of Nevada and California, 2015 Project, Washoe Tribe Clean Energy Project, Final Technical Report (March 18, 2016).
¹²⁴ Yerington Paiute Tribe Energy Plan (March 2014), p. 2.
¹²⁵ "Paiute Tribe to receive solar panel," Reno Gazette Journal (February 11, 2014).
¹²⁶ U.S. Department of Energy, Office of Indian Energy, Developing Clean Energy Projects on Tribal Lands, Data and Resources for Tribes, fiscal year 2013, p. 44.
¹²⁷ U.S. Department of Energy, Energy Efficiency and Renewable Energy, Geothermal Technologies Office 2013 Peer Review, Comprehensive Evaluation of the Geothermal Resource Potential within the Pyramid Lake Paiute Reservation (April 23, 2013).
¹²⁸ U.S. Department of Energy, Pyramid Lake Paiute Tribe - Pyramid Lake Energy Project Geothermal Assessment, 2016.
¹²⁹ U.S. EIA, Nevada Profile Overview, View the interactive map, Indian Lands and Geothermal Power Plant Map Layers, accessed April 25, 2024.