US coal generation rises to 2-year high in Jan

: Coal, Electricity
25/03/26

US coal-fired generation rose from year-earlier levels for the second consecutive month in January, with utilities relying more heavily on coal as temperatures dropped well below normal in some regions.

Generators dispatched nearly 83.2mn MWh of coal power in the US in January, which was 9.9pc more than a year earlier, the US Energy Information Administration (EIA) said in its Electric Power Monthly report released on Tuesday. Coal generation for the month was also the highest for any month since August 2022, when it reached 85mn MWh.

The average temperature in the contiguous US was 29.2°F (-1.7°C), 0.9°F below average, according to the National Oceanic and Atmospheric Administration. It was the coldest January in the US since 1988. Heating degree days for the month rose by 12.7pc from a year earlier. That pushed total electricity generation in the US up by 5.5pc to 401.5mn MWh, according to EIA.

Coal accounted for 21pc of the country's energy mix in January, up from 20pc in January 2024. The average cost of coal delivered for electricity generation was down by 3.6pc at $2.40/mmBtu from a year earlier.

More expensive natural gas continued to play out in the shifting generation mix, the report shows. Gas generation fell in January when compared with a year earlier. It also declined in December. Utilities dispatched 156.5mn MWh of natural gas-fired power in January, a 2.3pc decline from last year. That brought gas' share of the US energy mix in January to 39pc compared with 42.1pc a year earlier.

The spot price of natural gas at the Henry Hub averaged $4.62/mmBtu in January, a 12.9pc increase from January 2024, according to government agency.

Natural gas and hydroelectric power were the only two major generating sources to have year-on-year declines in utility-scale power output.

Meanwhile, US generators dispatched more wind and solar power to meet the increased heating demand. Renewable generation, including hydroelectric power, rose to total 85.5mn MWh compared with 72.2mn MWh in January 2024. Renewable power accounted for 21pc of the US electric power mix, up from 19pc a year earlier. Nuclear generation in the US also rose, increasing by 3.8pc from a year earlier to 71.7mn MWh.

The jump in coal generation increased January coal consumption by the electric power sector to 46.8mn short tons (42.5mn metric tonnes).

The strong coal burn reduced US power sector coal inventories to 114mn st in January compared with 124mn st January 2024. When the data is broken down by days of coal consumption held in inventory, power plants held the equivalent of 132 days of bituminous coal supply on site and 147 days of sub-bituminous coal. The bituminous coal supply was down from 150 days at the end of January 2024 while sub-bituminous inventories were down from 155 days.

By Elena Vasilyeva

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25/05/02

Australia's Coalition eyes power, resource funding cuts

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India extends directive to lift coal-fired generation

25/05/02

India extends directive to lift coal-fired generation

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US factory activity contracts for 2nd month in April

25/05/01

US factory activity contracts for 2nd month in April

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Indonesia's coal power phase-out hinges on funding

25/05/01

Indonesia's coal power phase-out hinges on funding

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Brazil's energy transition spending drops in 2024

25/04/30

Brazil's energy transition spending drops in 2024

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