Despite a long-term decline in coal use, rising electricity demands from data centers and industry are prompting utilities to keep expensive coal plants running, delaying their retirement and increasing customer costs.
Emma Foehringer Merchant reports for Floodlight.
In short:
- More than 30 U.S. coal plants scheduled for closure will remain operational due to surging electricity needs, especially in regions with growing data centers.
- Utilities are running coal plants "uneconomically," costing customers over $5 billion between 2015 and 2023, according to the Rocky Mountain Institute.
- Regulatory loopholes allow utilities to pass higher costs to customers, despite the availability of cleaner and cheaper energy sources.
Key quote:
“We really do have growth in demand and forecasts of growth that have not been seen really in the careers of most of the people who are working in the electric power world.”
— Michael Jacobs, senior energy analyst at the Union of Concerned Scientists
Why this matters:
Prolonging coal plant operations increases carbon emissions, impacting climate goals and public health. Addressing regulatory and industry incentives is crucial to transitioning to cleaner energy while meeting rising electricity demands.
