Coal-Fired

U.S. natural gas-fired power generation fell 14% in October from the year-ago month due to lower electricity demand and more power from renewable and nuclear sources, according to Genscape Inc. Surprisingly, the decline in gas-fired generation occurred even though a significant number of coal-fired plants were offline during the month.

Although the handwriting has been on the wall for several years now (see Daily GPI, Aug. 30, 2011; July 1, 2011), the momentum has picked up in Utah for accelerating the switch from coal- to natural gas-fired electric generation.

The proposal is “the least costly option” to replace generating capacity lost when a coal-fired plant in Kentucky closes.

Two coal-fired power plants owned by FirstEnergy in southwestern Pennsylvania are scheduled to be closed on Wednesday.

The decision comes after a competitive bidding process for the coal-dominated utilities.

The Environmental Protection Agency (EPA) on Friday issued long-awaitedproposed rulesfor greenhouse gas (GHG) emissions for new power plants, leaving gas-fired plants mostly unaffected but making construction of new coal-fired plants problematic.

Those wondering about future natural gas burn by power utilities — how much and when — should look to three factors for insight: renewable generation growth, coal-fired plant retirements, and revisions to federal air emissions regulations, analysts at Bernstein Research said in a note.

Driven by more stringent environmental regulations and low-priced natural gas, many aging coal-fired generation plants will be closed during the next seven years, creating a business for decommissioning services that will exceed $5 billion, according to a report by Boulder, CO-based Navigant Research.