Coal Fired Power – Exit Stage Right???
State of Colorado reached a tentative deal with its largest utility, agreeing to let EXEL convert or replace up to 900 MW of coal fired capacity with natural gas. Factoid – if the bottom 15% of all coal fired plants shut down, they would reduce coal-fired carbon dioxide by almost 30% (5% of all US emissions). However, replacing them with gas (not renewables) would trim that savings somewhat (roughly 1-1.5%) for a net reduction of 3.5-4%. In combination with US EPA restrictions on mercury, the coal-fired power generation landscape seems likely to grind lower over the next several years, especially if the ‘gas for (coal) clunkers’ proposal makes it to President Obama’s desk. (The cost of a scrubber for an old plant is not much different from the capital required to build a gas peaker).