Despite the continuing decline in coal power generation in the United States, coal’s share of the US electricity mix remains above 15%, more than any renewable energy source.
All renewables combined — wind, solar, hydropower, biomass, and geothermal — surpassed coal power generation in the U.S. electric power sector for the first time in 2022. But coal still holds about 16% share of electricity generation That is, more than wind energy. A share of about 11%, hydropower 6%, or solar 4% of the electricity generation mix.
It is true that coal generation and its share have been declining in recent years – thanks to the boom in renewables and the rising share of electricity generated by natural gas as a result of rising production and falling gas prices. But coal still plays a role in providing basic, reliable electricity, and despite its declining share and contribution to the American energy system, it cannot be neglected at all.
Coal is declining, but not at the rapid pace that environmentalists and enthusiasts would like.
The Biden administration aims to make the US electricity grid net-zero emissions by 2035. But achieving this will be difficult, given that currently fossil fuels – mostly natural gas and coal – provide 60% of all US electricity generation. Last year, gas accounted for 43% and coal more than 16%. RELATED: Russian gas station resumes exports after Ukrainian drone attack
Early this year, coal’s share held at more than 15%, even though coal power generation fell between January and April to a four-year low, according to LSEG data cited by Reuters columnist Gavin Maguire.
Coal consumption typically declines in the spring and fall — the so-called “shoulder” season — when demand for heating and cooling is lowest.
But coal-fired power generation could surge in the summer, especially if heatwaves hit areas where wind power cannot provide additional power supplies.
Moreover, operators planned fewer coal power retirements this year, according to EIA data. Operators plan to retire 5.2 gigawatts of U.S. generating capacity in 2024, with coal and natural gas together accounting for 91% of planned U.S. capacity retirements this year. The total capacity planned for retirement will be 62% lower than last year, when 13.5 GW was retired, and the lowest of any year since 2008.
After retiring 22.3 gigawatts of U.S. coal-fired generating capacity over the past two years, coal retirements will slow in 2024, the Energy Information Administration said in February. The 2.3 GW of coal-fired capacity scheduled to retire represents 1.3% of the U.S. coal fleet that was in operation as of the end of 2023. Coal retirements are scheduled to rebound in 2025 when operators expect 10.9 GW to retire.
The United States is now withdrawing coal power every year, but some regions rely on coal for power generation more than others, while the expected rise in electricity demand due to data centers to support artificial intelligence technologies will also require stable power supplies.
Five US states depend on coal to generate more than half of their electricity needs. These are North Dakota, Missouri, Kentucky, Wyoming and West Virginia, notes Reuters’ Maguire.
Moreover, data centers have experienced such explosive growth that they are taxing utilities beyond what the increased energy demand requires.
Some utilities in the eastern and southern parts of the United States are proposing to build new natural gas-fired capacity alongside renewables to support growth in electricity consumption coming from data centers. Others planned to delay the timeline for shutting down coal-burning capacity to ensure grid reliability.
For example, Kansas City-based utility Ergy said in June 2023 that it would retire coal operations at its Lawrence Energy Center only in 2028, compared to previous plans to retire at the end of 2023.
“Our service area is experiencing some of the strongest growth in electricity demand in decades, including very large projects such as Panasonic’s electric vehicle battery manufacturing plant and the Meta Data Center, as well as widespread economic development in both Kansas and Missouri,” said President and CEO David Campbell last year.
Written by Tsvetana Paraskova for Oilprice.com
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