1 Stat Shows Coal-Fired Power Plants Have Passed the Point of No Return
The spring months weren't good for America's shrinking fleet of coal-fired power plants. The facilities generated just 60,000 gigawatt-hours of electricity in April (20% of the nation's total consumption) and operated at just 35.8% of rated capacity. Both stats were historically low, and the hangover persisted into May.
The obvious reason for the dismal performance is that power generators have continued to retire coal-fired power plants without building new coal-fired facilities. While that's true, a closer look at the numbers reveals an important inflection point has been reached: Power generators are now retiring younger, larger assets that were expected to be with us for decades longer.
That suggests coal will be jettisoned from the electric grid faster than current projections are taking into account, which will accelerate the transition to renewables and natural gas. Is your portfolio prepared for that?
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