Coal industry executives can only wish Santa will leave them a lump of the black stuff in their stockings this Christmas. But as 2013 draws to a close, those stockings are likely to be empty as the pace of coal-fired power plant closures accelerates.
Market research firm SNL Energy estimates that coal-fired plants generating as much as 64,002 megawatts of electricity will be shuttered by 2021. That’s 5,000 megawatts more than SNL predicted in May. Just since that earlier projection, however, several energy companies and utilities announced they would close some big coal plants, including the Tennessee Valley Authority’s decision in November to take out of service coal-fired power stations generating 3,100 megawatts. That would leave the government-owned utility in the heart of coal country reliant on nuclear and natural gas to generate the bulk of the region’s electricity.
That’s certainly good for the planet, given that coal is responsible for 42 percent of global greenhouse gas emissions.
In the United States, the death of coal is being driven by low natural-gas prices and the imposition of stricter environmental regulations that could make operating a coal-fired power plant a money-losing proposition.