U.S. Coal Plants Face Long Term Viability Risks
A new analysis of coal plants in the US suggests that many of them could be retired from service early.
The Wood Mackenzie analysis found the power industry is facing unprecedented challenges, including new regulations and policies as well as lagging economic growth. They conclude that coal plant retirements will be driven mainly by more stringent air emission regulations, potential new rules for handling coal ash, and the future potential for climate change regulations. Other factors include rising capital costs, a lack of growth in power demand, low to moderate natural gas prices, and competing renewable energy sources.
They note that most of the recent retirement announcements have been accompanied by plans to replace that capacity with natural gas combined-cycle facilities or to repower the facilities with natural gas. Natural gas facilities offer lower emissions and a greater ability to cycle up and down in power output, so they work better with variable power sources such as wind energy. See the Wood Mackenzie press release.
Recent examples of coal plant retirements include Xcel Energy, which proposed in mid-August to retire 900 MW of coal-fired capacity at its Valmont and Cherokee plants in Colorado by 2017 and 2022, respectively, in keeping with a new state law.
Both plants will be re-powered with natural gas.
The Tennessee Valley Authority (TVA) also announced in August that it will idle nine units totaling about 1000 MW at three coal plants over the next five years. One unit may be converted to burn biomass fuel. Progress Energy Carolinas announced last year that it will shut down four coal plants in North Carolina by 2017. The four plants lack scrubbers and have a total capacity of nearly 1500 MW. Exelon Power is closing three coal plants near Philadelphia totaling 732 MW by mid-2012. See the press releases from Xcel Energy, TVA, Progress Energy, and Exelon Power.
Clean Energy Conferences Abound Through the End of 2010
Among the largest upcoming conferences is Solar Power International, running October 12-14 in Los Angeles. Previously called the Solar Power Conference and Expo, it was created in 2004 when two nonprofits, the Solar Electric Power Association and the Solar Energy Industries Association, partnered to present a business-to-business solar expo. More than 1,000 companies throughout the solar supply chain will exhibit this year. See the conference Web site.
Among other upcoming conferences is the Excellence in Building Conference and Expo in Portland, Oregon, October 12-14; Renewable Energy Markets 2010, also taking place in Portland, from October 19-22; the 2010 Geothermal Energy Expo, the world's largest, sponsored by the Geothermal Energy Association and coming to Sacramento, California, from October 24-27; the 2010 Summit on Emerging Technologies in Energy Efficiency, also coming to Sacramento, on November 7-9; and the CitiesAlive 8th Annual Green Roof and Wall Conference, which runs from November 30-December 3 in Vancouver, British Columbia.
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EREE Network News is a weekly publication of the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE).
