Dive Brief:
- The Energy Information Administration (EIA) expects about 20,000 MW of coal-fired generation to retire by 2016 than has been announced so far.
- The pace of coal unit retirements is about to pick up, with the average size jumping from 97 MW to 145 MW over the next decade, according to EIA. The units facing retirement will also be more efficient than those that have already shut down.
- Overall, EIA expects 60,000 MW of coal capacity to be shut down by 2020, out of a fleet of about 309,500 MW.
Dive Insight:
The owners of unregulated generation have been waiting for more unit retirements so that the power markets will improve. So far, only about 14,000 MW has retired so there could be a big shift in the markets, which would also benefit demand response providers.