Renewables and gas sectors slam proposed United States coal-plant bailout

Share

In a uncommon transfer, the Trump administration confirmed Friday that it's going to take "instant steps" to stop coal and nuclear energy services within the USA from closing.

"As the world's largest producer and refiner of oil and natural gas, which today is the number one source of USA electricity, our nation is on track to achieve the President's vision for energy dominance", Snitchler says.

"President Trump has directed Secretary of Energy Rick Perry to prepare immediate steps to stop the loss of these resources, and looks forward to his recommendations", Sanders said Friday.

"Impending retirements of fuel-secure power facilities are leading to a rapid depletion of a critical part of our nation's energy mix, and impacting the resilience of our power grid", the statement read.

The Trump administration's claims of energy security for keeping coal and nuclear plants online is not supported by the facts, as multiple power networks, including PJM, one of the biggest USA independent systems, point to a recent extremely cold "bomb cyclone" weather event in the USA northeast that showed the regional grid operating efficiently despite coal power plant closures, cited by Ars Technica.

"While we believe DOE has broad privileges to identify threats to national security, we are skeptical that (the order) entitles DOE to direct power market operators (.) to pay generators more based upon that threat", said Katie Bays, energy analyst at Height Capital Markets in Washington.

"We support all efforts to ensure the security of our nation's electric power supply, which is critical to the reliability of our electric power grids, to low-priced electricity and to our national defense", Murray said Friday in a statement.

Delhi Chief Minister Arvind Kejriwal has written a letter to the Prime Minister, seeking his intervention to ensure that CIL will offer additional railway rakes for the transportation of coal to thermal power plants in the Delhi region, as the Indian capital is facing acute shortage of power as a result of lower coal stock.

As Trump's fossil-fuel energy mouthpiece, Perry earlier commissioned a study to identify regulatory causes for coal-plant closures, but no regulations were found; instead, cheap natural gas was observed to be responsible for widespread industry decline.

More news: 2 bodies recovered after small plane crashes off of Long Island beach
More news: Woman Charged with Manslaughter After Driving Car onto Little League Field
More news: Deutsche Bank CEO says bank is committed to the U.S

The issue is a priority for some of the president's top supporters, including coal moguls Robert E. Murray and Joseph Craft of Alliance Resource Partners, who donated a million dollars to the president's inauguration. Shelley Capito, R-W.Va.

During that time, the DOE would conduct a study of vulnerabilities in the United States power grid system. "Doing so will be vital to our state's economy and to our nation's viability, security, and independence".

Details of the memo, dated May 29 and circulated ahead of a National Security Council meeting on the subject on Friday, were first reported by Bloomberg News late on Thursday.

Groups like the American Coalition for Clean Coal Electricity have told the Energy Department that retiring coal facilities could threaten the electrical grid.

A diverse group of energy industry groups - including oil, natural gas, solar and wind power - condemned the proposal, saying it would raise energy prices and distort markets.

American power generators are expected to retire - or announce the retirements of - 16,200 megawatts of coal-fired and 550 megawatts of nuclear plant capacity this year, according to Bloomberg New Energy Finance.

The administration says the transfer will forestall coal and nuclear energy vegetation vital to {the electrical} grid from closing, however opponents say the requirement is basically a bailout for a dying business that the president promised to save lots of and can trigger People' electrical energy payments to get dearer.

Administration officials are still weighing the best approach, and Sanders did not describe any specific plan on Friday.

Share