Coal fired generation and consumption declines span US

Sunday, 22 Jan 2012

Argus quoted the Energy Information Administration said coal-fired generation declined across the US in October despite overall generation rising slightly while natural gas picked up share in the eastern part of the country.

Coal-fired generation fell 4.1pc on the year in October, and natural gas-fired generation rose 1.7pc, EIA's Electric Power Monthly report showed. The month matches the trend in 2011. On a year-to-date basis, coal-fired generation fell 4.2pc in the first 10 months of the year compared with natural gas generation gaining 1.6pc.

Net generation from coal totalled 126.9mn MWH, the lowest October output since at least 2009. Coal generation fell in 30 states and rose in 15 states from a year prior. EIA said meanwhile, natural gas-fired generation fell in 17 states.

Output from all fuel sources rose 0.4pc in October from a year earlier with 22 states posting declines. Hydroelectric, wind and other renewables posted strong gains to grow their share to 15.3pc of total generation from 12.8pc a year prior. Coal's share of generation fell to 41pc from 42.9pc a year prior.

Falling natural gas prices are pressuring coal demand especially in the eastern US at the same time that environmental regulations and a slow economic turnaround have caused power companies to examine their fuel choices.

Natural gas generation rose in 20 of the states where coal-fired output fell. The gains were concentrated in states east of the Mississippi River particularly the mid-Atlantic and the eastern areas of the Midwest.

According to EIA electric utilities which account for the bulk of power generation and consumption spent an average USD 4.72 per mmBtu burning natural gas in October, 5¢ lower than a year earlier while the cost of coal increased 13¢ to $2.42 per mmBtu.

(Sourced from Argus)