EIA: Coal-Fired Power Capacity to Drop Nearly 25% by 2029

Researched by Industrial Info Resources (Sugar Land, Texas)--Coal-powered electricity generation in the U.S. is maintaining its downhill slide, according to the U.S. Energy Information Administration (EIA).

Citing a number of factors ranging from competition with natural gas and renewable energy to the expiration of coal-friendly tax credits, the EIA's Today in Energy report said this week that 23% of the 200,568 megawatts (MW) of coal-fired capacity currently operating in the U.S. is planned to be retired by the end of 2029.

Planned retirements continue to be focused on relatively older facilities, the EIA notes: "Coal-fired generators--especially older, less efficient units--face higher operating and maintenance costs, which make them less competitive and more likely to retire. In addition, some coal-fired power plants must comply with regulations limiting the discharge of wastewater by 2028, which would require additional capital investment, likely influencing the decision to retire some of these coal-fired units."

Also, the type of coal being used by power plants plays a role: "Refined coal, which is made by mixing proprietary additives to feedstock coal, benefited from a tax credit that expired in early 2022. Of the 55,943 MW of U.S. coal-fired capacity that primarily burns refined coal, 27% (15,269 MW) has reported plans to retire between 2022 and 2029."

Michigan, Texas, Indiana and Tennessee have the most coal-fired capacity announced to retire through 2029, accounting for a combined 42%, according to the EIA.

Industrial Info is tracking projects worth more than $6 billion involving U.S. coal-fired power plants that are facing the three Ds: decommissioning, dismantlement and/or demolition. Such projects often don't come cheap, as they can involve removal of hazardous waste and coal ash as well as the dismantlement of the power plant infrastructure.

In Crystal River, Florida, the demolition and dismantlement of Duke Energy's (NYSE:DUK) coal-fired, 964-MW Crystal River South Plant is planned for completion in the first quarter of 2023. The facility was built in the 1960s and was retired and replaced with a combined-cycle power station. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a detailed project report.

Duke Energy also is planning the dismantlement and demolition of units 2, 3 and 4 of the 715-MW Allen Power Station in Belmont, North Carolina. The project is planned for kickoff in the third quarter of 2024, with completion by the second quarter of 2027. Subscribers can click here for the project report.

The Allen Power Station closure also will require the excavation of more than 80 million tons of coal ash from open, unlined impoundments at several locations and placement of the coal ash in onsite landfills as part of a state consent order, according to the Gaston Gazette.

In Moscow, Ohio, Vistra Corporation (NYSE:VST) (Irving, Texas) is planning the decommissioning and dismantlement of the 1,394-MW, coal-fired William H. Zimmer Power Station. Kickoff is planned for the first quarter of 2028, with completion in second-quarter 2035. Originally intended to be a nuclear power plant, the facility began operations in 1991. Vistra closed the plant in May 2022 as part of its transition away from coal. Subscribers can click here for the project report.

Subscribers can click here for all related projects mentioned in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).