Beatrice Lang
Coal is a fossil fuel that has been used to generate electricity since the 19th century. It remains a significant source of energy worldwide, contributing just over a third of global electricity generation. In 2022, global coal-fired power generation rose by nearly 2%, pushing CO2 emissions from coal-fired power plants to record levels. While coal use has been declining in advanced economies, it has rebounded after the pandemic, with emerging economies driving demand. In the US, coal was the fourth-highest energy source for electricity generation in 2023, contributing about 16%. This is a notable decrease from its average share of 52.8% in 1997.
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What You'll Learn
Coal-fired plants are transitioning to natural gas
In 2022, coal generated about 19.5% of the electricity at utility-scale facilities in the United States, a notable decrease from 38.6% in 2014 and 51% in 2001. This decline has been attributed to the increased availability of natural gas, decreased consumption, the rise of renewable power sources, and stricter environmental regulations.
Since 2011, more than 100 coal-fired plants have been replaced or converted to natural gas, according to the U.S. Energy Information Administration (EIA). This trend is driven by several factors, including stricter emission standards, low natural gas prices, and advancements in efficient natural gas turbine technology.
The transition from coal-fired plants to natural gas offers several benefits. Firstly, it helps utilities meet rising power demands while enhancing reliability and lowering emissions. Secondly, it allows plants to address regulatory compliance and leverage their existing infrastructure. Additionally, natural gas-fired plants provide greater reliability and efficiency, especially during peak demand periods, making them a more dependable option for modern energy production.
There are two primary methods for switching coal-fired plants to natural gas. The first method involves retiring the coal-fired plant and replacing it with a new natural gas-fired combined-cycle (NGCC) plant. This approach results in a significant increase in generating capacity, with NGCC plants having 94% more capacity than the coal-fired plants they replace. The second method is to convert the boiler of a coal-fired steam plant to burn other types of fuel, such as natural gas or, in some cases, waste materials or wood waste solids.
As the energy landscape continues to evolve, the conversion of coal-fired power plants to natural gas represents a forward-thinking strategy. It enables utilities to navigate regulatory challenges, improve operational efficiency, and ensure a reliable power supply to meet increasing grid demands.
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Coal is the most expensive power source
In 2022, coal generated about 19.5% of the electricity at utility-scale facilities in the United States, a significant decline from previous years. Coal has been a major power source for many years, but its use is becoming increasingly expensive and unsustainable.
The cost of generating electricity from coal is influenced by several factors, including fuel prices, government subsidies, and environmental regulations. While short-term fluctuations in fuel prices can impact the cost of energy generation in natural gas and oil-fired power plants, coal-fired plants are less affected due to their reliance on locally available coal. However, the economics of coal-fired plants may be negatively impacted by the reduced operation of these plants as a result of the priority given to renewables on the grid.
The levelized cost of electricity (LCOE) is a metric used to compare the costs of different methods of electricity generation. On average, the LCOE of utility-scale solar power and onshore wind power is lower than that of coal and gas-fired power stations, although this varies by location. The declining cost of renewable energy technologies, such as solar power, has made them more competitive with coal in recent years.
In addition to the economic factors, the use of coal as a power source carries significant environmental costs. Coal-fired plants are major contributors to air pollution and greenhouse gas emissions, leading to climate change and negative health impacts. Political action and stricter environmental regulations have been implemented to address these issues, further increasing the costs associated with coal-fired power generation.
As a result of these factors, coal is becoming an increasingly expensive power source, and its use is expected to continue declining in favor of cheaper and cleaner alternatives, such as natural gas and renewable energy sources.
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Coal mining techniques damage the environment
In 2022, coal generated about 19.5% of the electricity at utility-scale facilities in the United States, a significant drop from 38.6% in 2014 and 51% in 2001. Coal has been used to generate electricity in the US since an Edison plant was built in New York City in 1882, and it became the leading fuel for generating electricity by the mid-20th century. However, coal mining techniques have detrimental effects on the environment.
Surface mines, also known as strip mines, were responsible for approximately 63% of coal mined in the US in 2022. These operations entail removing the soil and rock above coal deposits, altering the landscape. The most extensive surface mines are in Wyoming's Powder River Basin, where coal seams are close to the surface and up to 70 feet thick. Mountaintop removal and valley fill mining have also wreaked havoc in the Appalachian Mountains of West Virginia and Kentucky. This destructive practice involves blowing off mountain tops with explosives, filling valleys with rock and dirt, and potentially contaminating downstream water with pollutants harmful to aquatic life.
The burning of coal for energy production results in the emission of various harmful substances. Chief among them are sulfur dioxide, nitrogen oxides, particulates, and carbon dioxide (CO2). These emissions contribute to acid rain, smog, respiratory illnesses, haze, and lung disease. Additionally, mercury and other heavy metals released during coal burning have been implicated in neurological and developmental damage in both humans and animals.
The storage and disposal of coal ash, a byproduct of coal-fired power plants, pose further environmental challenges. Coal ash can contaminate groundwater if not properly managed. Coal ash impoundment failures can also cause significant environmental damage downstream. While air pollution control measures, such as scrubbers, have reduced mortality rates from air pollution, environmentalists advocate for faster closure of coal plants and more decisive political action to combat climate change.
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Coal consumption in the US
The shift away from coal is evident in specific states as well. For instance, California has effectively eliminated coal consumption, with only one functioning coal power plant in San Bernardino County, contributing to less than 0.1% of the state's electricity capacity. Similarly, Hawaii officially banned the use of coal in 2020, prohibiting the issuance or renewal of permits for coal power plants after December 31, 2022.
However, coal consumption remains significant in certain regions. In 2020, coal provided over 50% of the electricity in eight states: West Virginia, Wyoming, Missouri, Kentucky, Utah, North Dakota, Indiana, and Nebraska. These states accounted for 38% of coal-fired generation in the US while only contributing 11% of the country's total power generation. Wyoming, in particular, has the highest carbon intensity in the country, with 2,046 pounds per megawatt-hour, despite having an above-average reliance on wind power at 16%.
The US holds substantial coal reserves, ranking first globally in 2016, with 254,197 million tons of proven coal reserves. This amount is equivalent to 347.7 times the country's annual consumption levels, ensuring a significant coal supply for the foreseeable future. However, the US is also a net exporter of coal, selling a considerable portion of its coal production to other countries.
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Coal-fired generation decline
The decline in coal-fired generation in the United States can be attributed to several factors, including the increased availability of natural gas, decreased consumption, the rise of renewable power sources, and stricter environmental regulations. In 2022, coal-fired generation contributed 19.5% to 20% of the electricity produced in the US, a significant drop from 38.6% in 2014 and 51% in 2001. This decline has been ongoing since the 2010s, with coal plants closing due to the cheaper and cleaner alternatives of natural gas and renewables.
The shift away from coal-fired generation is also influenced by political actions and environmental concerns. In 2007, 154 new coal-fired plants were in the planning stages across 42 states. By 2012, that number had dropped to 15, largely due to new rules aimed at reducing mercury and carbon emissions. In 2016, Oregon lawmakers approved a plan to stop paying for out-of-state coal plants by 2030 and increase renewable energy sources to 50% by 2040. Additionally, states like Washington and Hawaii have prohibited coal plants with emissions exceeding those of natural gas plants, with Hawaii officially banning coal use in 2020.
The Energy Information Administration (EIA) projected a 6% decrease in coal-fired generation in 2022 compared to 2021. While coal-fired generation saw a brief rise in 2021 due to increased electricity demand and higher natural gas prices following the pandemic, it has since resumed its downward trend due to constrained coal supply. The EIA also expects coal's share of the generation market to fall to around 10% by April 2023, further highlighting the decline of coal-fired generation.
The decline in coal-fired generation has economic implications for coal plants. As power production decreases, the fixed costs of plant operation and maintenance, which typically rise with the age of the plant, become more significant, increasing the cost of power generation. This, coupled with the rapid development of renewable energy sources like solar, wind, and battery storage, continues to challenge coal's economic and technological viability.
Looking ahead, the future of coal-fired generation in the US appears limited. Companies have already announced plans to retire or convert a significant portion of existing coal-fired generating capacity by 2030, with further closures or conversions expected by 2040. As a result, it is possible that all remaining coal-fired power plants could be shuttered by 2040, marking a significant shift away from coal as a primary source of electricity generation in the US.
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Frequently asked questions
In the US, coal generated about 19.5% of the electricity at utility-scale facilities in 2022, down from 38.6% in 2014 and 51% in 2001. However, coal and other fossil fuels still provide 70% of electricity, according to a statement by the US Secretary of Energy, Ernest Moniz, in 2013.
Coal is a remarkably dense energy source: a single metric ton of coal can produce up to 1,927 kilowatt-hours of electricity. For comparison, natural gas can only produce 99 kWh per 1,000 cubic feet. However, coal is also highly invasive to extract and produces more greenhouse gas emissions than any other energy source.
Alternatives to coal include natural gas, renewable energy sources such as wind, solar, hydropower, biomass, and geothermal power, as well as nuclear energy.
