Coal news and updates

A public meeting this month on plans to adjust the manner in which federal coal mining leases are managed drew protests from miners and others who say the government has an agenda to destroy the coal industry. The same week, state officials detailed an explosion in the growth of solar energy generation in Utah. The juxtaposition of the two incidents illustrates the crossroads at which the nation’s energy policy now sits. Government policy will influence but not determine where it goes from here, which is becoming manifestly clear.

The transition from reliance on non-renewable energy sources is progressing at a pace not anticipated only a few years ago. The rapidity of the growth in solar installations will speed up the pace at which demand for coal-fired energy diminishes. For those in the mining industry, the change is painful. For the communities that have long supported coal extraction, it is hugely disruptive. Government regulators shouldn’t be asked or expected to manipulate land policies for the purpose of preserving jobs, but policies must take into account the impact of the upheaval on people and the places where they live.

A public hearing on the Bureau of Land Management’s plan to put a three-year moratorium on new coal leases as it considers adjustments to leasing policies drew several hundred coal industry workers, many of whom condemn the plan as a campaign to appease powerful environmental interests. But the government would be negligent if it failed to recalibrate its policies in light of the trends toward lower coal demand.

That trend is clearly influenced by the upsurge of both supply and demand for solar power, which in Utah has resulted in significant increases in industrial generating capacity, as well as in the use of household rooftop systems. The state anticipates new solar generation systems will add 850 megawatts of additional capacity next year. In the last six years, the number of tax credits processed for household rooftop solar installations increased from about 150 to more than 3,000.

It should be noted that the solar industry in Utah now employs about 2,700 workers, compared to the 1,600 who work in coal mines. Those numbers should not be viewed as a metric of victory or defeat for either side of the issue, which is not a contest of coal versus solar. Coal will remain a significant contributor to the energy grid for a substantial period of time, but we are clearly seeing a surge in solar power and other renewable energy sources that will continue to relegate coal to a lesser place in the energy pantheon.

Government policy should reflect marketplace changes and allow them to evolve without unnecessary obstruction. The government’s actions to adjust mining lease policies are more of a reaction to market forces than an effort to control them. Those forces will, by nature, wreak havoc on parts of the market while elevating others, which we now see happening in Utah with increasing speed and impact.

Source: Deseretnews