DOE Projects Slowing in Coal Use

 

Dec. 18--CHARLESTON, W.Va. -- The Charleston Gazette

Coal's share of U.S. energy supply is expected to drop slightly over the next two decades as regulators, investors and utilities drop plans for new coal-fired power plants, the U.S. Department of Energy said this week.

DOE's Energy Information Administration has dropped its project of new coal plants that would come online by 2030 from 104 gigawatts to 46 gigawatts, the equivalent of nearly 100 typical new facilities not being built.

The DOE analysis assumes no new limits on greenhouse gas emissions. Instead, the agency said, its report, "reflects the behavior of investors and regulators who, in their investment evaluation process, are implicitly (or explicitly) adding a cost to many proposed power plants that employ GHG-intensive technologies."

The DOE outlined its projects in the 2009 edition of its Annual Energy Outlook, released Wednesday.

DOE estimated coal's share of electrical generation would decline from 49 percent to 45 percent between 2007 and 2025, and then rebound slightly to 47 percent in 2030 as a small number of new coal plants are added.

Coal, oil and natural gas will provide 79 percent of total U.S. primary energy supply requirements in 2030, down from an 85-percent share in 2007, the DOE said.

For the first time in 20 years, the annual DOE report projects "virtually no growth" in U.S. oil consumption. DOE said that reflects the combined effect of new vehicle fuel economy standards, requirements for use of renewable fuels, and an assumed rebound in oil prices as the world economy recovers.

DOE predicted "rapid growth" of renewable energy of 3.3 percent per year, brought on by renewable fuel standards enacted by many states.

But by 2030, renewables would still make up only 9 percent of U.S. generation. The Union of Concerned Scientists noted that "there is substantial room for improvements" and that DOE studies indicate renewable energy could provide 20 to 25 percent of U.S. supply by 2020 to 2025, without any increase in electricity prices.

DOE projected a slow in the growth of energy-sector carbon dioxide emissions because of the reduction in projected additions of new coal0fired conventional power plants. Energy-related C02 emissions grow at 0.3 percent per year from 2007 to 2030, the DOE said. Still, electricity generation is expected to remain the dominant source of emissions in 2030, with coal plants the biggest single source of U.S. carbon dioxide emissions. They will represent 36 percent of the total in 2030, DOE said, which is more than the entire transportation sector.

Reach Ken Ward Jr. at kward@wvgazette.com or 304-348-1702.

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