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Coal may outpace natural gas in electric power generation this winter

PPL's Brunner Island three-unit coal-fired plant located on the west bank of the Susquehanna River.

Carolyn Kaster / The Associated Press

PPL's Brunner Island three-unit coal-fired plant located on the west bank of the Susquehanna River.


Coal is projected to surpass natural gas as the dominant fuel source in electric power generation this winter, according to a recent analysis by the U.S. Energy Information Administration.
Until the mid-2000’s about half the electricity in the country was produced by burning coal, and 20 percent or less came from gas. But the recent boom in shale gas production caused gas to close in on “king coal’s” lead. The mix of fuels in power generation fluctuates, but these days, gas and coal each supply roughly a third of U.S. power, with gas surpassing coal for the first time in April 2015.
During the first half of this year, natural gas supplied the fuel for 36 percent of U.S. electricity generation, while coal was 31 percent.
EIA analyst Tyler Hodge cites spot prices for natural gas that have been rising recently, which makes coal more competitive again.
“Forecast cooler winter temperatures, especially in areas where coal is dominant, also contribute to higher projected coal use in power generation,” Hodge writes.
He predicts coal’s dominance this winter will just be a “blip.” In the EIA’s 2016 Annual Energy Outlook, which looks ahead to 2040, coal-fired electric power generation is expected to continue to decline, while gas becomes the dominant fuel source.
However, renewable energy is also on an upswing, and by the middle of next year, its share of electric power generation will cause a decline in the use both fossil fuels, according Hodge.
“In July 2017, projected generating capacity from utility-scale solar and wind plants is 57% and 10% higher, respectively, than in July 2016.” he writes.
 

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