United States power plant owners and operators have told the Energy Information Administration (EIA) they plan to retire nearly 60 gigawatts (GW) of the currently operated coal-fired capacity by 2035, with no new installations reported.
However, the existing U.S. coal-fired facilities are actually generating more electricity for the first time since 2014, reports the EIA. According to the administration's most recent Short Term Energy Outlook, this is largely due to the significantly higher natural gas prices and relatively stable coal prices.
Coal and natural gas have been the two largest sources of electricity generation in the United States and in many areas of the country, these two fuels compete to supply electricity based on their relative costs.
Although there is no mandatory retirement age for coal-fired power plants, it's uneconomic for generators to continue operating older, less efficient coal plants, especially if they need upgrades to meet increasingly strict federal and state environmental rules, said the EIA.
Since 2002, around 100 GW of coal capacity has retired in the U.S. with a relative capacity-weighted average age of 50 years, though the EIA said the units that have reported plans to retire aren't necessarily the oldest ones operating.
"Coal-fired plants, in particular, have been identified as a large source of CO2 emissions," the administration said. "As a result, many states with clean energy standards have required a reduction or complete phase-out of coal-fired generation, even though some units may still be economically viable."
The EIA added that with continued pressure on coal generation to reduce CO2 emissions, the number of coal plants planning to retire between now and 2035 is likely to increase.