Coal news and updates

U.S. coal-fired power plants scheduled to shut

U.S. power companies have shut or converted about 16,000 megawatts (MW) of coal-fired power plants since 2009 and have plans to shut or convert more than 45,000 MW over the next 10 years or so.Cheap natural gas prices and strict environmental rules have made coal the more expensive option in some areas.

Eventually, the switch away from coal may shut 60,000 MW to 100,000 MW of power generation across the country, according to industry estimates.

In 2012, low gas prices from record shale production depressed power prices to at least 10-year lows, making it uneconomic for generators to install new environmental controls on their oldest and smallest coal plants.

Those controls are needed to keep the units compliant with federal environmental rules proposed since President Barack Obama took office in 2009.

There are about 318 gigawatts (GW) of coal-fired power plants in the United States, about 30 percent of the nation's 1,051 GW generation fleet.

The U.S. Energy Information Administration in December forecast coal used for power generation is expected to rise from 37.4 percent in 2012 to 39.3 percent in 2013 and 39.9 percent in 2014.

Natural gas used for power generation is expected to decline from 30.3 percent in 2012 to 27.5 percent in 2013 and 27.2 percent in 2014 on forecasts that higher gas prices will prompt generators to burn more coal, EIA said.

Coal produced over half of the nation's power as recently as 2003.

Source: Reuters