On Tuesday, President Donald Trump enacted a series of executive orders aimed at revitalizing the coal industry in the United States. In his remarks, he consistently attributed the dramatic decline of the sector over the last two decades to his predecessor, Democratic policies, and stringent environmental regulations.
However, state and local officials, along with electric grid operators, are facing a more complex issue impacting coal’s decline, one that cannot be resolved simply through legislation: the financial viability of coal power.
In Maryland, the state’s only remaining coal power station, the Talen Energy-operated Brandon Shores plant, will remain in service beyond its initial closure date of June 1. This decision comes under an agreement facilitated earlier this year by the regional grid operator PJM, in collaboration with Talen Energy, state authorities, and the Sierra Club.
Talen Energy had announced the plant’s closure two years prior, citing economic unfeasibility. Yet, PJM concluded that the facility is essential for maintaining grid reliability. To extend the operational period of Brandon Shores until additional transmission capacity is installed, Maryland consumers will shoulder nearly $1 billion in expenses.
David Lapp, director of the Maryland Office of People’s Counsel, expressed concerns regarding the narrative surrounding the plant’s retirement. “Some believe that Brandon Shores was closing due to Maryland’s climate policy,” he said, “but this was fundamentally a decision made by a generation company in a competitive market.”
The ongoing transition towards cheaper energy sources, such as natural gas and renewables, has significantly reduced coal’s share in the nation’s electricity supply over the past two decades. Currently, coal plants account for approximately 15 percent of U.S. electricity generation, a steep decline from over 50 percent in 2000.
Concerns about grid reliability have arisen in various regions, prompting discussions about the implications of closing coal facilities. In Utah, for example, the Intermountain Power Agency’s 1,800-megawatt coal power plant in the West Desert is set to shut down this year, according to data from the U.S. Energy Information Administration. The agency intends to transition to natural gas plants capable of utilizing cleaner hydrogen fuel. However, recent legislation allows for the possibility of reactivation should new customers or operators be identified, as reaffirmed by IPA spokesperson John Ward following last month’s vote by the Utah legislature.
