According to a recent report by the Energy Information
Administration (EIA), more than half of U.S. power generation now comes from
plants over 30 years old. Of these, coal plants are the most significant.
They're also oldest, with some exceeding 50 years of operation. Many of these coal
plants were built before the Clean Air Act (1970), which began standardizing
the requirements for new power generation facilities. The old plants were given more leniency with these regulations and were allowed to operate beyond their expected lifetimes.
The EPA intends to impose new regulations which would limit
the allowable pollutant emission levels and water usage, and also make changes
to coal ash disposal methods. The implementation costs of these methods would
be high (an estimated $12 billion USD per year). However, the EPA estimates the
monetized health benefits of these changes will greatly outweigh the expenses.
These regulations threaten the life of many of these plants,
which will not be able to afford the costs of redesign by the 2014 deadline. Industry
estimators predict a 5-19% loss of U.S. coal based capacity (17-59GW of a total
316GW). Though most of these are small, intermittently run plants, they play an
important role in the nation's power generation during peak demand.

Source: U.S. Energy Information Administration, Form
EIA-923, "Power Plant Operations Report"
The chart above, taken from the U.S. Energy Information
Administration, shows current power generation in the U.S. by type. These
changes could open up opportunity for added growth in the natural gas and
renewable sectors. In the future, EIA predicts natural gas and renewables to
play an increasing role, while coal power output will rise not from new plant
production but from increases in process and technology efficiencies. The
American Council for an Energy Efficient Economy (ACEE) is urging this practice
industry-wide, emphasizing the importance of curbing electricity demand and
increasing efficiency over building new generation sites.
Most environmentalists say this is a step in the right
direction; however, many industry advocates agree that these new regulations,
if imposed, will be hard for the coal power industry to swallow. What do you
think?
Source: C&EN - Changes
Ahead For Old Power Plants
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