Use of coal-fired plants continues to decline

Mar 12 - Register-Herald (Beckley, WV)

More than 80 percent of electric generating capacity retired in 2015 was conventional steam coal, according to a report released earlier this week by the U.S. Energy Information Administration .

The retired coal-fired generating units were mostly older and smaller than the ones still in operation, the EIA found.

"Coal's share of electricity generation has been falling, largely because of competition with natural gas. Environmental regulations affecting power plants have also played a role," the report states.

Approximately 30 percent of the retirement took place in April, when the federal Environmental Protection Agency's Mercury and Air Toxic Standards took effect. Some plants, the report states, applied for and received a one-year extension, meaning many coal power plants are expected to shutter this year, most likely next month.

However, several coal-fired power plants received an additional one-year extension, expiring in April 2017 , to ensure regional electric grid reliability, the report states.

"Much of the existing coal capacity in the United States was built from 1950 to 1990 during a time when electricity sales were growing much faster than population and gross domestic product. In more recent years, electricity sales growth has slowed or fallen, and net capacity additions (of all fuel types) have been relatively low," according to the report.

The units retired last year were anywhere between 55 to 40 years old. EIA reports the average age was 54. The average age of the coal fleet operating today is 48.

The report states the amount of coal capacity retired in 2015 was about 4.6 percent of the country's total. Nearly 50 percent of the 2015 retired coal capacity was located in three states -- Ohio , Georgia and Kentucky -- and those states each retired at least 10 percent of their coal capacity in 2015.

Other states that traditionally have had high levels of coal-fired electricity generation, such as Indiana , West Virginia and Virginia , each retired at least one coal plant in 2015.

Also in 2015, the U.S. remained a net exporter of coal, shipping 74 million short tons while importing 11 million short tons.

Yet, exports fell for the third straight year, ending the year with 23 million short tons less than in 2014 and 50 million short tons the year before.

"Slower growth in world coal demand, lower international coal prices and higher coal output in other coal-exporting countries contributed to the decline in U.S. coal exports," according to a recent fact sheet by the EIA. "Lower mining costs, cheaper transportation costs and favorable exchange rates (compared to the U.S. dollar) continue to provide an advantage to producers in other major coal-exporting countries such as Australia , Indonesia , Colombia , Russia and South Africa ."

The bright spot was coal exports to India increased by about 2 million short tons. However, exports to the rest of Asia tumbled, as did shipments to Europe , down nearly 15 percent last year.

The report states domestic coal imports in 2015 totaled 11.3 million short tons, the same as in 2014. Approximately 85 percent of imports were steam coal used primarily in generating electricity. Although the amount of imports did not change in 2015, the source and point of entry of these imports did from 2014.

"The biggest changes in the origin of U.S. imports involved imports from Colombia and Indonesia , which increased by 8 percent and decreased by 42 percent, respectively. Colombian coal is highly competitive with domestic coal at power generators located along the Gulf of Mexico and southern Atlantic coast. Metallurgical coal, which is used in the steelmaking process, was primarily imported from Canada ," according to the report.

Canada still remains the state's largest trading partner with approximately 30 percent of West Virginia's foreign trade destined for the northern country.

Last week's coal market report was not negative, but far from bright. Central Appalachian coal's current price increased 20 cents to $42.25 a short ton.

-- Email: dtyson@

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