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Coal Power in the U.S.: Evolution Amidst Economic Pressures

On Tuesday, President Donald Trump signed a series of executive orders aimed at preserving the coal industry in the United States. During the announcement, he attributed the significant decline of coal power over the past twenty years to the policies of his predecessor, the Democratic Party, and stringent environmental regulations.

However, many state officials and electric grid operators across the nation are grappling with a fundamental issue that cannot simply be resolved through executive action: the economic viability of coal power.

A pertinent example is evident at the Brandon Shores plant in Maryland, the state’s last operational coal facility, owned by Talen Energy. Under a recent agreement facilitated by the regional grid operator, PJM, the plant’s closure, originally scheduled for June 1, has been postponed. This deal involved collaboration among Talen, state officials, and the Sierra Club, aiming to ensure the continued availability of power during grid reliability assessments.

Talen initially announced its intention to shut down the plant two years earlier, citing financial unfeasibility. Nevertheless, PJM argued that the plant’s operation was crucial for sustaining grid reliability. As a result, Maryland ratepayers will be shouldering nearly $1 billion in costs to keep Brandon Shores in operation while additional transmission infrastructure is developed.

David Lapp, who heads the Maryland Office of People’s Counsel, expressed that the decision to maintain Brandon Shores was not primarily influenced by Maryland’s climate policies but was rather a market-driven choice by the generating company. He noted, “There are those who contend the plant’s retirement was a result of state climate initiatives, but it ultimately stemmed from a free-market decision by the generation company.”

For about two decades, the economic competition posed by cheaper natural gas and renewable energy sources has significantly diminished coal’s role in the U.S. energy landscape. Currently, coal-fired plants supply roughly 15% of the nation’s electricity, a sharp decline from over 50% in 2000.

State and local governments are increasingly concerned about the implications of reduced coal generation on grid reliability. In Utah, for example, the Intermountain Power Agency operates the largest coal plant in the United States slated for closure this year. The facility, which has a capacity of 1,800 megawatts, is part of a transition plan to shift towards natural gas power that incorporates cleaner hydrogen fuel technologies. Nevertheless, ongoing legal frameworks in Utah allow for the potential restart of these coal operations, as discussions unfold regarding new customers and operational management for the coal facility.

As the landscape of energy production continues to evolve, the future of coal power in the U.S. remains fraught with economic challenges and regulatory scrutiny, prompting a broader examination of energy policies and their implications for grid reliability and environmental sustainability.

Source
arstechnica.com