Although coal generation in the United States continues to decline, GTCFX points out that coal still accounts for more than 15 percent of the U.S. power structure, more thanAbugarciablackmax3Any single renewable energy. By 2022, the sum of all renewable energy (including wind, solar (000591), hydropower, biomass and geothermal) will exceed coal-fired power generation in the US power industry for the first time. However, coal still accounts for about 16 per cent of electricity generation, which is higher than single renewable energy such as wind and solar energy. Hydropower accounts for about 11 per cent and solar power for 4 per cent.
In recent years, coal power generation and market share have declined, mainly due to the rapid development of renewable energy and the increase in the share of natural gas power generation brought about by falling natural gas prices and increased production. However, coal still plays an important role in providing stable basic load power, and although its share is declining, its contribution to the US power system can not be ignored.
Although the use of coal is declining, it is not as fast as environmental activists and enthusiasts had expected. The Biden administration aims to achieve zero emissions from the U. S. power grid by 2035. However, at present, fossil fuels (mainly natural gas and coal) still account for 60% of the total electricity generation in the United States, and achieving this goal faces huge challenges. Last year, natural gas accounted for 43% of power generation, while coal accounted for more than 16%.
GTCFX noted that coal's share remained above 15 per cent at the beginning of the year, although coal generation fell to its lowest level in four years between January and April. Coal consumption usually falls in spring and autumn (the so-called "flat season"), when heating and cooling demand is the lowest. Coal production is likely to increase in summer, especially when heat waves hit and wind power cannot meet the additional demand for electricity.
In addition, operators plan to reduce the decommissioning of coal power generation capacity this year, according to EIA. The planned decommissioning capacity of the United States in 2024 is 5.Abugarciablackmax3.2 gigawatts (GW), of which coal and natural gas account for 91 per cent of planned decommissioning capacity. The total capacity of planned decommissioning decreased by 62% compared with last year, and the decommissioned capacity was 13% last year.Abugarciablackmax3.5 gigawatts, the fewest since 2008.
The United States has decommissioned 22.3 gigawatts of coal-fired power generation in the past two years, and the pace of coal decommissioning will slow by 2024, EIA said in February. By the end of 2023, 2.3 gigawatts of coal-fired power generation planned to be decommissioned accounted for 1.3% of operating coal generation in the United States. Coal decommissioning is expected to rebound in 2025, when operators are expected to retire 10.9 gigawatts.
Although the United States is phasing out coal power generation capacity every year, some areas rely heavily on coal for power generation. The rapid growth of data centers that support artificial intelligence technology is expected to lead to a surge in power demand, requiring a stable power supply. GTCFX says five states in the United States rely on coal for more than half of their electricity generation.
In addition, GTCFX believes that the rapid growth of data centers has caused utilities' tax revenues to exceed soaring electricity demand. Some utilities in the eastern and southern United States plan to build new natural gas and renewable power generation facilities to cope with the increase in power consumption in data centers. Other companies plan to postpone the decommissioning of coal-fired power generation to ensure the reliability of the grid.
GTCFX noted that the service area is experiencing the strongest growth in electricity demand in decades, mainly due to large projects such as the Panasonic electric vehicle battery manufacturing plant and Meta data center, as well as extensive economic development in Kansas and Missouri.
[risk Tip] according to the relevant regulations on foreign exchange management, the buying and selling of foreign exchange shall be carried out at the trading venues prescribed by banks and other countries. Those who buy and sell foreign exchange privately, buy and sell foreign exchange in disguise, buy and sell foreign exchange or illegally introduce a large amount of foreign exchange shall be subject to administrative punishment by the foreign exchange control agency in accordance with the law.Abugarciablackmax3If the case constitutes a crime, criminal responsibility shall be investigated in accordance with the law.