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EIA: US coal-fired electricity retirements will double by 2025

EIA: US coal-fired electricity retirements will double by 2025

The Energy Information Administration announced on Tuesday that U.S. power producers plan to retire about 8.1 gigawatts of coal-fired generation capacity in 2019. This would be roughly twice the amount retired in 2024.

The EIA's analysis shows that coal retirements slowed to 4 GW last year, a dramatic decrease from the 9.8 GW annually retired over the past decade.

Why it's important

As a result, the country's electricity production from coal has fallen to 16%. Natural gas and renewable energy are now cheaper alternatives.

Government goals based on climate change have led to a decline in coal-fired electricity, which emits significantly more carbon dioxide than other sources of electricity.

In the U.S. however, where a third of all data centers in the world are located, utilities have become more efficient.

Retirement is delayed

As a wave of new, sprawling data centers connect to the grid, fossil-fuel powered power plants will be displaced.

By the Numbers

The EIA stated that by 2025 some of the largest coal-fired power plants in the United States will be shut down. These include the 1.8 GW Intermountain Power Project, J H Campbell, in Michigan, and Brandon Shores, in Maryland. Both have a capacity of 1.3 GW.

This year, more than 12,3 GW in total power capacity will be retired. That's a 65 percent increase compared to 2024. The coal-fired power plants account for 66% and the natural gas, 21%.

The majority of natural gas power plants that will be retired in the future use single turbines which are less efficient than combined cycle plants.

RENEWABLES on the Rise

The EIA expects that as fossil-fired power plants retire in 2025, 63 gigawatts will be added to utility-scale electricity generating capacity. The EIA stated that solar power will make up the majority of these new additions. This will be followed by wind, battery storage and natural gas.

The agency stated that the additions would represent a 30% increase over 2024 when the largest capacity was installed in a single calendar year since 2002.

(source: Reuters)