Coal-Generated Power Plummets Due To Cheap Natural Gas

According to the Energy Information Agency's (EIA) May outlook, expect coal-generated electric power to drop a full 15% for 2012 while natural gas generated power increases by 24%. Coal dropped from 45% to 36% as the source of U.S. power generation.

2 minute read

May 23, 2012, 1:00 PM PDT

By Irvin Dawid


In addition to the cheapest natural gas prices in a decade, Stephen Lacey credits environmentalists' successful efforts to halt new coal plants from opening and to shutter existing ones, and additional challenges facing America's oldest fossil fuel energy industry.

"The U.S. coal industry is facing major headwinds. The current drop in generation is mostly due to competition from natural gas. But there are other factors that will assist in pushing coal out of the electricity mix: An aging fleet of plants, cost-competitive renewables, new clean air regulations, and a strong anti-coal movement are working together to reduce the attractiveness of coal.

"Since 2010, plant operators have announced 106 retirements of coal facilities - representing 13 percent of the U.S. fleet, according to the Sierra Club."

On Feb. 29, Lacey reported on "Nine More Dirty, Aging Coal Plants Set to Close": "So what's going to happen to the lights when all that coal gets phased out? According to a group of forward-thinking power providers, there's already enough unused combined cycle natural gas capacity installed to make up for over 100 GW of closures."

EIA noted a turn-around of sorts in 2013, however, forecasting that "electricity generation from coal will increase by about 4 percent as projected coal prices fall slightly while natural gas prices increase, allowing coal to regain some of its power generation share."

Thanks to Paul Scott

Monday, May 14, 2012 in ThinkProgress

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight