Recent trends in the U.S. energy sector indicate a significant slowdown in coal plant retirements by power generators. In 2024, the planned retirement of electric generating capacity has dropped by 62% compared to 2023, making it the lowest in 16 years. Operators plan to retire 5.2 gigawatts (GW) of capacity, compared to 13.5 GW in 2023. This slowdown is attributed to factors such as increased energy demand, grid reliability concerns, and the aging infrastructure of alternative resources like natural gas plants.

Coal plants account for a smaller portion of retirements this year, with only 2.3 GW scheduled, equating to 1.3% of the coal fleet operational at the end of 2023. These retirements mainly target older units, averaging nearly 54 years of operation. However, a rebound in coal plant closures is anticipated in 2025, with around 10 GW projected to be retired.

Natural gas facilities represent the largest share of retirements for 2024, with 2.4 GW scheduled, or 46% of the total capacity being retired. Notable closures include the Mystic Generating Station in Massachusetts, which accounts for 60% of this capacity. The shift highlights challenges in maintaining older fossil fuel facilities amid a growing push for renewable energy​

CoalZoom​

American Public Power Association​

S&P Global.

This adjustment underscores the dynamic interplay between energy demand, reliability, and the transition to cleaner energy sources.