The Revival of Coal: A New Era of Deregulation and Risk
The promise of new demand is driving some utilities to reconsider scheduled coal plant retirements. In Virginia, where Amazon Web Services keeps 96 data centers and is investing $35 million to expand its campuses, the regional transmission organization, PJM Interconnection, requested a delayed retirement of two coal plants due to increased demand from data centers. Demand from Google and Meta data centers has also kept a coal-fired power plant in Nebraska online past its retirement date.
A Shift in Priorities
But keeping a patient on life support is substantially different than bringing a corpse back from the dead. A PJM executive said at a conference last month that he wasn’t sure if the market was “sending the signal right now that coal should actually stick around.” Building new, technologically up-to-date coal plants—an idea Trump floated at Tuesday’s presser—would be a hard sell in an economy where investors are wary of big capital investments for outdated technology. Tech companies, meanwhile, are focusing long-term energy investments on nuclear power, as well as renewables and battery technologies.
A New Era of Deregulation
Even in states where coal wields political power, data centers haven’t proven to be a savior. In March, lawmakers in West Virginia attached provisions to juice up coal use to a bill intended to jump-start the data center industry in the state. Despite cheerleading from the governor, the bill ultimately passed without the coal provisions after Appalachian Power, West Virginia’s largest utility, intervened, claiming that the coal requirements would raise bills for customers. An executive told lawmakers that even a big new customer like a data center wouldn’t spur the utility to buy more coal-fired power; the regulatory and financial reality, he said, favors natural gas.
Risks and Consequences
Regulations on coal plant emissions are a clear target for this administration. Last month, the EPA rolled out a suite of attacks on a wide swath of regulations, signaling its intent to reconsider everything from rules on power plant emissions to greenhouse gas reporting. The agency also created an email address to allow polluters to petition for a temporary exemption from mercury and air toxics standards set out under the Clean Air Act—known as the MATS rule—as the agency reconsidered a host of pollution rules. Montana’s Colstrip power plant—one of the dirtiest coal plants in the country, which was fighting upgrades mandated by an updated pollution rule—has already requested an exemption.
The Human Cost
If the new executive orders are any suggestion, the Trump administration sees this deregulation, and the targeting of climate change policies, as a key element of propping up coal. A separate presidential proclamation released Tuesday extends the MATS exemption for an unknown number of coal plants, while another executive order tasks the attorney general with attacking state-level climate regulations, singling out Vermont, New York, and California.
Conclusion
The revival of coal is a complex issue, with both economic and environmental implications. While some utilities may see the potential for increased demand as an opportunity to keep coal plants online, the risks and consequences of this approach are significant. The Trump administration’s push to deregulate coal plant emissions and target climate change policies is a clear attempt to prop up an industry that is increasingly seen as antiquated and harmful.
FAQs
Q: What is driving the revival of coal?
A: Increased demand from data centers and other industries is driving the revival of coal.
Q: What are the risks and consequences of keeping coal plants online?
A: Keeping coal plants online poses significant risks to public health and the environment, including increased air pollution and the potential for toxic coal ash spills.
Q: What is the Trump administration’s stance on coal?
A: The Trump administration is pushing to deregulate coal plant emissions and target climate change policies in an effort to prop up the coal industry.
Q: What are the long-term energy investments being made by tech companies?
A: Tech companies are focusing on long-term energy investments in nuclear power, renewables, and battery technologies.
