Category Archives: Wind

Trump’s Coal Revival Nothing More Than Talk According to EIA Data

More facts showed up this week telling the same story about coal—the revival isn’t coming.

These new facts (see here for an earlier post about ‘stubborn facts’), courtesy again of the independent Energy Information Administration, show that coal production in the United States totaled 773 million short tons in 2017. This was up 6 percent from 2016, but better keep the champagne corked. The increase was due entirely to exports, a volatile market that is not conducive to long-term growth. To wit, in the five years from 2012-2016, exports swung from a high of 125.7 million short tons to a low of 60.3 million short tons.

In the vastly more important domestic market, particularly the electric power sector, which accounts for 85-90 percent of overall annual coal consumption, demand dropped, falling by a little more than 12 million tons in 2017. And those tons are never coming back: EIA’s latest Short-Term Energy Outlook (available here), its first to include projections through 2019, projects that electric power demand for coal will continue falling, dropping to 629.5 million tons that year, down from 666.4 million tons in 2017.

Continue reading Trump’s Coal Revival Nothing More Than Talk According to EIA Data

The Facts Tell The Story: Coal Comeback Is Nothing But A Trump Delusion

“Facts are stubborn things.”

John Adams, our second president, generally gets credit for this wonderful aphorism, but regardless of who was the first to say it, the observation itself is what matters: You simply cannot wish away facts. This came to mind earlier this week when I looked at the Energy Information Administration’s monthly electric power overview (which can be found here); it’s a publication that only the geekiest of energy wonks would ever read, particularly on a regular basis. However, dry as it may be, it does one thing exceedingly well: It presents facts, just as they are—not as people may want them to be.

One of the many such facts that caught my eye this month concerns electricity generation from coal, that shiny black rock that seems to be the moving force behind all the Trump administration’s energy and environmental policies. ‘The war on coal is over,’ his minions mouth repeatedly. ‘We are going to bring the jobs back,’ the president assures miners at every opportunity.

Problem is, facts are stubborn things. In the EIA review, which covers the first nine months of 2017, coal-fired electricity generation fell compared to the comparable year-earlier period. To be fair, it didn’t drop by much, sliding 1.5 percent to 919,805 thousand megawatt-hours from 934,267 thousand mwh a year ago. However, if the war is over and the jobs are coming back, then there should have been no slide at all; indeed, there should have been an increase.

The slide in coal-fired generation also pushed coal production for the sector, which accounts for the vast majority of U.S. coal consumption, down during the first nine months. Overall, just over 504 million tons of coal were used to generate electricity, down from 509 million in 2016—which was the lowest production year for the industry since 1979. Hardly the turnaround the Trump administration repeatedly trumpets.

What the administration definitely doesn’t trumpet in its incessant tweets and coal-dominated decision-making, is that during this same nine-month period, generation from non-emitting wind and solar jumped 13.6 percent, climbing to 284,584 mwh from 250,482 mwh in 2016. Combined with hydro, renewables generated just over 525,000 mwh of electricity annually for the first nine months of the year, within hailing distance of the nation’s nuclear sector, which has generated just under 600,000 mwh so far this year.

And while the administration clearly is not a fan of renewables, more growth in this sector is just around the corner. The American Wind Energy Association says 84,000 MW of wind capacity are installed across the United States, with another 25,000 MW under construction. Similarly, the Solar Energy Industries Association reports that 47,000 MW of solar capacity has been installed in the U.S., with another 21,000 MW of utility-scale solar generation currently in the construction pipeline.

As much as Trump and his backers like to blame renewables and the environmental community for the downfall of coal, the stubborn little fact is that the war, such as it was, against coal was waged, and won, by natural gas. From an expensive afterthought used largely just as a peaking resource during periods of high demand in the early 2000s, natural gas has taken ever-larger chunks of the electric generation market since then. From less than 20 percent of the total in 2001 (when coal’s share was roughly 50 percent), natural gas’ share of the market has climbed steadily, reaching 34 percent in 2016 and topping coal as the largest single source of electricity in the United States (see graphic below).

This transition, in turn, was due to another simple, stubborn fact: Huge quantities of formerly uneconomic gas supplies in the Mid-Atlantic and surrounding regions became accessible at affordable prices due to the commercialization of horizontal drilling and fracking technologies. As EIA noted earlier this year in one of its Today in Energy news stories (available here): “The increase in natural gas generation since 2005 is primarily a result of the continued cost-competitiveness of natural gas relative to coal.”

No war, no hidden agendas, just stubborn economic facts—obvious for anyone to see, provided, that is, they are willing to look.

–Dennis Wamsted


Latest DOE LED Report
 Illustrates Transition
 In Electric Power Sector

I was at Home Depot this weekend (so many tools, so little time) and they had a special on LED lights that caught my attention—a four pack of dimmable 60-watt replacement LEDs was selling for $9.88, or just under $2.50 a bulb. I’m not the type to track day-to-day pricing for much of anything, but the display caught my attention because I had just finished reading the Energy Department’s latest report on the status of the LED market—which found that the typical dimmable 60W replacement bulb in 2016 cost roughly $8 apiece.

This is important for two reasons. First, DOE assumes that LEDs are steadily going to account for an ever-larger percentage of the installed lighting stock in the United States, estimating that by 2035 86 percent of all the lighting in the country will be LEDs of one type or another and that these vastly more efficient lights will cut primary energy use by 3.7 quadrillion British thermal units (Btus)—that’s a lot of electricity that will no longer be needed, about 10 percent from the 2016 level, in fact, when roughly 37.5 quads were used to generate electricity in the U.S. (Paying attention out there in utility land?) But those DOE forecasts rely heavily on pricing assumptions, and if the current price of the most commonly used LED has already tumbled below $2.50, down roughly 70 percent from just a year ago, that means the nationwide take-up of LEDs almost certainly will be faster than DOE currently estimates.

Second, the sharply declining price of this lowly light bulb is a symbol of the massive changes under way in the energy industry, such as the steep declines in solar and windpower costs, the surge in corporate interest in cleaner energy and the plateauing of electricity demand. These changes are largely market-driven and, thankfully from my perspective, outside the reach of politicians on either side of the aisle.

Continue reading Latest DOE LED Report
 Illustrates Transition
 In Electric Power Sector

Vanishing Demand,
 Not Trump Coal Crusade
 Is Real Issue For Utilities

It’s planning time in the electric utility industry, and a raft of new reports make two points abundantly clear:

  • Efforts to “save” the coal industry are bound to founder since utilities, as a group coal’s largest customer by far, have moved on and are planning a cleaner future in which the black rock’s current share of the electricity market, in the low 30 percent range, is as high as it’s ever going to get.
  • Vanishingly small increases in demand (and the occasional outlook for declines) will be a major issue for the industry in the next 10 years.

In its latest 10-year power plant siting plan, for example, Florida Power & Light pointed out that it was continuing its efforts “to move away from coal-fired generation.” In total, the utility said it planned to take 1,216 MW of coal-fired generation off its system by the first quarter of 2019. (FPL’s site plan can be found here.)

Similarly, in its recently filed 2017 integrated resource plan (IRP), PacifiCorp, the sprawling utility holding company that serves 1.8 million customers in six western states, said its preferred generation portfolio going forward “reflects a cost-conscious transition to a cleaner energy future.” Through 2028, PacifiCorp said it would be able to meet its system-wide power needs through demand side management (DSM), new renewable (primarily wind) generation and short-term purchases on the wholesale market. Looking longer-term, the company said it planned to shutter 3,650 MW of coal-fired capacity by 2036. (PacfiCorp’s IRP and other backup information can be found here.)

Continue reading Vanishing Demand,
 Not Trump Coal Crusade
 Is Real Issue For Utilities

Utility Experience
 Blows Away Concerns
 About Windpower

The Southwest Power Pool said last week that it met 52.1 percent of the electricity demand in the sprawling transmission organization’s service territory with windpower during a portion of the overnight period on Feb. 13, marking the first time SPP had topped the 50 percent mark. What’s even bigger news is that hardly anyone noticed—these records have been falling consistently for the past several years with the steady increase in wind farm construction across the Midwest; SPP set its prior record of 49.2 percent just last year.

The real news, however, wasn’t the percentage itself, but what Bruce Rew, SPP’s vice president of operations, said later in the same press release concerning the changes that have occurred in the past 10 years. Then, the SPP release noted, a goal of 25 percent would have been deemed unrealistic.

Clearly, not anymore.

“Since then,” Rew said, “we’ve gained experience and implemented new policies and procedures. Now we have the ability to reliably manage greater than 50 percent wind penetration. It’s not even our ceiling. We continue to study even higher levels of renewable, variable generation as part of our plans to maintain a reliable and economic grid of the future.”

Continue reading Utility Experience
 Blows Away Concerns
 About Windpower