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Home Coal Demand

U.S. coal fired generation capacity saw a significant shift in 2023

Editor by Editor
1 year ago
Reading Time: 1 min read
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U.S. coal fired generation capacity saw a significant shift in 2023, marking a continued decline in the industry. Let’s dive into the latest stats and what this means for the future of energy.

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Over the last decade, U.S. coal power generating capacity has been shrinking by an average of 4.3% per year.

In 2023, this capacity dropped to 195,000 MW, down 4.6% from the previous year. The decline signals a shift in energy production.

The impact on actual power generation is even larger. In 2023, U.S. coal generation totaled 676 GWh, a 19% decrease compared to 2022. This reflects the changing dynamics of the country’s energy mix.

The decline in coal generation isn’t just about capacity being retired. It’s also a story of existing plants being underutilized. Last year, U.S. aggregate coal capacity factors fell to 38.7%, down from 44.6%.

Thinking ahead, I’m betting coal’s rough ride isn’t over. We might even see record lows, dipping below that 38.0% mark from the 2020 COVID days.

We can probably also expect capacity factor declines to moderate, limiting coal-to-gas switching compared to prior years.

Jeffrey Davies, EnerWrap

 


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