Competition from cheap natural gas has been the principal reason why coal-fired and nuclear power plants have been shutting down in the US in recent years, a study by the Department of Energy has concluded, rejecting the allegation from Republicans that a “war on coal” by the Obama administration has been principally to blame. A report from the energy department’s staff on electricity markets and reliability, published on Wednesday evening, found that the rise of gas for power generation had held down wholesale electricity prices in the US, helping consumers but hurting other types of generation. Over 2012-16, about 42,700 megawatts of coal-fired generation capacity have shut down in the US, approximately 14 per cent of t he total amount, as plants have found it difficult to compete against gas and renewables.
FT 24th Aug 2017 read more »