BAKU, Azerbaijan, February 12. Coal-generated electricity production is expected to proceed with a downward trend in 2024, the US Energy Information Administration (EIA) says, Trend reports.
Anticipated trends point to a continued reduction in US coal generation, driven by the ongoing competitiveness of natural gas, the retirement of some coal plants, and the increasing integration of renewable energy sources.
In 2024, the EIA projections indicate a 23-percent decline (14 billion kilowatt-hours or BkWh) in coal generation within y the Electric Reliability Council of Texas (ERCOT), primarily due to the rise in solar generation.
The Midwest experiences the most significant coal decline among regions, with a 22 BkWh reduction in 2024, while the Southeast sees a decrease of 9 BkWh. The Midwest's diminished coal generation is counteracted by a 24 BkWh uptick in natural gas-fired power plant generation, capitalizing on sustained low fuel costs.
Annually, the EIA projections indicate a 7-percent reduction in coal consumption by the power sector in 2024, followed by a 6-percent decline in 2025. This decrease is attributed to the addition of new solar and wind generating capacity, coupled with the scheduled retirement of 11 GW of coal-fired plant generating capacity.
Despite the overall downward trend in coal consumption throughout the forecast period, the anticipated 6-percent decline in 2025 is less than the previously expected 8-percent decline in last month's outlook. This slower decline results from a revised expectation of slightly increased electricity generation in 2025 and a modest decrease in renewable capacity additions compared to last month's forecast, the agency explained.
The EIA projects a 19-percent reduction in coal production in 2024, driven by a decline in domestic coal consumption and inventories. The forecast anticipates a further 3-percent decrease in coal production in 2025.
