by Brianna Crandall — October 11, 2010—A new analysis of the challenges facing coal-fired power plants in the United States suggests that many of them could be retired from service early, according to news from the U.S. Office of Energy Efficiency and Renewable Energy. The Wood Mackenzie analysis found that the power industry is facing unprecedented challenges, including new regulations and policies as well as lagging economic growth.
The research firm concluded that coal-fired power 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.
Wood Mackenzie notes that most of the recent retirement announcements have been accompanied by plans to replace the retired 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, explains the firm.
North America Power: Coal in the Crosshairs is available from the Wood Mackenzie Web site.
