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US Crafting Plan to Stem Coal-Plant Closures, Energy Chief Says

Mar 07, 2025 - financialpost.com
The Trump administration is developing a market-based plan to prevent the closure of U.S. coal-fired power plants, aiming to meet the anticipated rise in electricity demand driven by artificial intelligence. Energy Secretary Chris Wright mentioned that the plan would focus on removing barriers to allow entrepreneurs to build and maintain power systems. President Trump is expected to discuss this initiative, which aligns with his support for fossil fuels over renewable energy, despite the declining role of coal in U.S. power generation. Coal currently accounts for about 15% of U.S. power, down from over 50% in 2000, and many plants are set to close due to environmental regulations.

The administration's efforts include potentially using emergency authority to keep coal plants operational, a move previously attempted during Trump's first term. However, the resurgence of coal is uncertain, as it is generally more expensive than wind or solar energy. Environmental groups, like the Sierra Club, argue that supporting coal is economically and environmentally detrimental. Despite these challenges, the administration is focused on maintaining coal as a power source, particularly for data centers, amidst the growing demand for electricity.

Key takeaways:

  • The Trump administration is developing a market-based plan to prevent the closure of US coal-fired power plants to meet the anticipated electricity demand surge from AI.
  • Energy Secretary Chris Wright mentioned that the plan aims to remove obstacles for entrepreneurs to build and operate power systems.
  • Despite efforts to support coal, a significant number of coal plants are scheduled to shut down due to environmental regulations and economic factors.
  • The Sierra Club highlights that coal plants are generally more expensive to operate than wind or solar sources, contributing to their decline.
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