The United States is expected to burn more than 22 percent of its coal by 2014, the first annual increase in fossil fuels since 2014, according to the Energy Information Administration.
“The US electricity sector has been generating more electricity this year than coal-fired power plants due to high natural gas prices and relatively stable coal prices,” the government agency said. Although coal is selling at record prices, economists say it is exacerbating inflation.
President Joe Biden By 2030, it aims to reduce global greenhouse gas emissions by 50-52 percent by 2030. The news is an obstacle to those plans, but the IIA predicts that the transition to coal use will be temporary. Consumption by 2022 is down 5 percent this year.
“In many parts of the country, these two fuels are competing for electricity based on their relative costs,” the agency said. “American natural gas prices are more volatile than coal, so natural gas prices often determine the relative share of natural gas and coal.
Coal consumption in the United States has been declining almost every year since 2005. It dropped by 60 percent last year. In the United States, most coal is burned to generate electricity.
This summer, natural gas prices have been the highest since 2014. The warmer weather has prompted more people to use air conditioning, and much of the country’s energy is produced by natural gas, which has pushed up demand. They are nowhere near the end of this year, when the cold snap of Texas has more than tripled prices as natural demand increases. The effects of that temporary increase were felt across the country, with far-flungers suffering as far as Minnesota.
The EIA is expecting another, smaller increase in natural gas prices during the winter. That’s not unusual, but what sets this year apart is the expected rate and duration of that increase. Due to high demand in the summer, less natural gas was sent for winter storage. Narrow supply means higher prices, more than double the 2019 high and about 40 percent higher than the 2018 numbers.
In the coming years, coal and natural gas prices will have little effect on energy prices. Although power plants are getting older, the IIA estimates that new fossil fuels will be less competitive than renewable ones such as solar and wind. A.D. By 2026, the cheapest sources of electricity, solar, coastal wind and geothermal energy, new natural gas factories will be cut by about 20 percent and new coal plants by more than 50 percent. Even for standalone battery storage, the cost of Peaker’s natural gas plants will be around 10 percent. Hybrid solar-powered installations are about 60 percent cheaper than plant-based plants.
While coal prices are more stable than natural gas prices, the price of electricity from coal has still risen over the past decade or so. In western Virginia, 90 percent of electricity is generated from coal, and the price of electricity has risen by 122 percent, which is a huge inflation, 21 percent.
Over the past decade, other coal-dependent states, such as Ohio, Minnesota, and Pennsylvania, have reduced their use. Pennsylvania, for example. By 2010, coal had up to 50 percent electricity.