BAKU, Azerbaijan, October 9. The U.S. electric power sector consumed 199 million short tons (MMst) of coal in the first half of 2025, up 15% from the same period in 2024, according to the latest outlook from the U.S. Energy Information Administration (EIA), Trend reports.
The increase was driven by higher overall electricity demand and elevated natural gas prices, which made coal-fired generation more competitive in many regions.
Cold winter temperatures, particularly in the Southeast in January, also contributed to higher coal use as households relied on electricity for space heating. The average price of natural gas delivered to electric generators during the first half of 2025 was $4.17 per million British thermal units (MMBtu), 46% higher than a year earlier. For the second half of 2025, natural gas prices are expected to fall to about $3.40/MMBtu, though still 27% higher than in 2024, supporting a projected 4% year-over-year increase in coal consumption for 2H25.
Looking ahead to 2026, the EIA forecasts that U.S. power sector coal consumption will decline to 390 MMst, roughly 3% lower than the 2025 annual total. Although natural gas prices are expected to rise by 10%, increased electricity generation from new utility-scale solar facilities—especially in the Midwest—will reduce demand from coal-fired plants.
The electric power sector has indicated plans to retire about 4% of existing coal-fired capacity by the end of 2025, further contributing to the expected decline in coal use next year. However, recent Department of Energy announcements to invest in domestic coal infrastructure could influence retirement decisions and encourage additional coal-fired generation.
