Coronavirus creates crisis for coal industry
The United States is on track to produce more electricity this year from renewable power than from coal for the first time on record, new government projections show — a transformation partly driven by the coronavirus pandemic, with profound implications in the fight against climate change.
It is a milestone that seemed all but unthinkable a decade ago, when coal was so dominant that it provided nearly half the nation’s electricity. And it comes despite the Trump administration’s threeyear push to try to revive the ailing industry by weakening pollution rules on coalburning power plants.
Those efforts, however, failed to halt the powerful economic forces that have led electric utilities to retire hundreds of aging coal plants since 2010 and run their remaining plants less frequently. The cost of building large wind farms has declined more than 40% in that time, while solar costs have dropped more than 80%. And the price of natural gas, a cleanerburning alternative to coal, has fallen to historic lows as a result of the fracking boom.
Now the coronavirus outbreak is pushing coal producers into their deepest crisis yet.
As factories, retailers, restaurants and office buildings have shut down nationwide to slow the spread of the coronavirus, demand for electricity has fallen sharply. And because coal plants often cost more to operate, many utilities are cutting back on coal power first in response.
In just the first 4½ months of this year, the fleet of wind turbines, solar panels and hydroelectric dams have produced more electricity than coal on 90 separate days — shattering last year’s record of 38 days for the entire year.
The Energy Information Administration estimates that the nation’s total coal consumption will fall by nearly onequarter this year, and coal plants are expected to provide just 19% of the country’s electricity, dropping for the first time below both nuclear power and renewable power, a category that includes wind, solar, hydroelectric dams, geothermal and biomass.