Planned Retirements of U.S. Coal-Fired Electric-Generating Capacity to Increase in 2025

The planned retirement of coal-fired electric-generating capacity in the United States is set to increase significantly in 2025, following a year of relatively low retirements. This shift marks a notable acceleration in the transition away from coal power within the U.S. energy landscape, and has implications for grid reliability, emissions, and the growth of renewable energy sources.

According to recent data, electricity generators are planning to retire 12.3 gigawatts (GW) of capacity in 2025. This represents a 65% increase compared to 2024, when 7.5 GW were retired. 2024 had the lowest level of generation retirements since 2011. The rapid increase in planned retirements indicates a significant acceleration in the decommissioning of older, less efficient, and more polluting coal plants.

The retirement of coal power plants are driven by factors such as the declining cost of renewable energy, stricter and increased environmental regulations,and the aging infrastructure of existing coal facilities. Many utilities are finding it more economical to invest in cleaner energy sources rather than upgrading or maintaining older coal plants.

This transition impacts both generation capacity and the overall fuel mix of the electric grid. As coal plants are retired, they must be replaced by other sources of energy, such as natural gas, solar, wind, or energy storage, to ensure grid stability and meet electricity demand. The increase in retirements presents both opportunities and challenges for the power sector.

• Major Takeaways:
• Planned coal-fired power plant retirements will jump 65% in 2025 compared to 2024.
• 2024 saw the lowest level of power plant retirements since 2011.
• 12.3 GW of coal capacity are scheduled for retirement in 2025.
• The shift away from coal is accelerating.

“The continued retirement of coal-fired power plants reflects the changing economics of the electricity sector, with cleaner and often cheaper alternatives becoming increasingly competitive.”

The accelerated retirement of coal-fired power plants is a significant development in the U.S. energy transition. What are your thoughts on the pace of this transition and its impact on the energy landscape? Share your comments below.