According to a report, U.S. coal-fired power generation is projected to increase this year for the first time since 2014. The amount of electricity produced by coal plants is expected to increase by 22% in 2021, reversing coal’s six-year decrease according to the U.S. Energy Information Administration.
The increase in coal-fired power is the result of an increase in the price of natural gas, which pulled ahead of coal as the largest producer of electricity in the U.S. in 2016.
This year, natural gas prices have increased to $4.93 per million British thermal units (Btu), double its 2020 average price, the EIA said. By comparison, the price of coal has been steady at an average of $2 per Btu for over a decade.
“The EIA’s updated energy outlook underscores the importance of maintaining a diverse portfolio of electricity resources that includes coal,” Michelle Bloodworth, president and chief executive of the coal industry group America’s Power said. “As we have said for some time, an all-the-above approach to energy that includes a continued role for the coal fleet is critical in ensuring that our grid remains resilient and reliable and our electricity remains affordable.”
The resurgence of coal is not likely to last very long though due to the industry’s declining capacity over the past decade, the EIA report concluded. Since 2010, the generating capacity of the U.S. coal industry has gone down from more than 300 gigawatts to just over 200 gigawatts.
Coal output has declined in large part due to increasing regulations aimed at the industry for its outsized carbon footprint. While coal produced only 10% of the nation’s energy last year, it by far put out the most carbon emissions.
President Joe Biden, whose administration has committed to a 100% carbon-free electric grid by 2035, has targeted coal as part of his battle against climate change. The White House indicated that it would take actions against coal-fired power generation before next month’s United Nations climate conference.
“Recognizing that unabated coal power generation is the single biggest source of greenhouse gas emissions globally, and consistent with President Biden’s domestic leadership, G7 Leaders will commit to an end to new direct government support for unabated international thermal coal power generation by the end of this year,” the White House said in a statement.
Regardless, coal suppliers in the U.S. and Canada are expected to invest an additional $4.8 billion on 15 new coal mining projects, according to a Global Energy Monitor report published Monday.
“We hope policymakers will look at this updated forecast and understand that there are very real challenges in seeking to decarbonize the grid and remove fossil fuel sources, like coal and natural gas, that combined provide more than 60% of the nation’s electricity,” Bloodworth said.
Leave a Comment