Some coal plants won't retire as planned, but dependence on the fossil fuel continues to decline

The Dave Johnson Mine in Glenrock, Wyo.  (Wyoming DOQ photo)

Coal's reign as king of American energy is over, but the fossil fuel still supplies about 15% of the U.S. energy grid, with some companies reversing plant retirement plans, report Austyn Gaffney and Mira Rojanasakul of The New York Times. "Utilities have extended the life of nearly a third of coal units with planned retirement dates, either through delays or by reversing course and canceling retirements entirely, between 2017 and today."

The need to power energy-hungry AI and government policy changes may explain some coal's extended life. According to Gaffney and Rojanasakul, "Utilities could be taking advantage of growth in energy demand and changes in environmental regulations to keep these plants operating."

Although recent studies show running and repairing old coal plants is more expensive than the price of building renewable stations, some utilities insist keeping them open is a needed temporary solution. The Times reports, "Utilities argue they need to keep coal units on the grid while they build out new sources of energy. . . . They’ve predicted a 20 percent increase in electricity demand by 2035."

Some energy experts point to renewables' ability to meet increased grid needs. Gaffney and Rojanasakul write, "Renewables could exceed the increase in power demand. . . . Since 2019, U.S. generation from wind and solar exceeded the growth in power demand by almost 100 million megawatt-hours. In 2024, renewables out-generated coal for more than 80% of the year."

As the energy sector diversifies, coal's continued decline seems inevitable. The Times reports, "Even the units that are kept open will continue to decline in capacity as more planned gas, nuclear, and renewables enter the grid. Seth Feaster, a data analyst at the Institute for Energy Economics and Financial Analysis, told the Times, "They’ll keep those units open to keep their options open, but it doesn’t mean they’re going to be used very much. . . . They’re just not competitive."