Coal news and updates

Coal-fired power generation in most of the US has topped 2019 and 2020 levels so far this month on record heat in some parts of the country and reduced nuclear and hydro power output.

 

Generators in the 48 contiguous states of the US — from Washington in the northwest to Florida in the northeast — dispatched an average 2.83mn MWh/d in the first 20 days of this month, according to hourly data collected by the US Energy Information Administration (EIA). That compares with 2.22mn MWh/d in the same period of 2020 and 2.49mn MWh/d for 1-20 June 2019.

 

EIA did not post hourly data earlier than 1 July 2018, but calculations based off of the agency's Electric Power Monthly report suggest the last time average coal-fired generation for 1-20 June was higher was in 2018.

 

Total generation in the 48 contiguous states has also been topping 2019 and 2020 levels so far this month amid warmer-than-normal weather in the midcontinent and eastern US in the first half of the month and more recent record high temperatures in the west. Total power generation averaged 11.8mn MWh/d in the first 20 days of this month, compared with 11.1mn MWh/d in the same periods of 2020 and 2019.

 

Coal's share of total US power output climbed to 24pc for the month to date, from 20pc a year earlier and 23pc in the same period of 2019.

 

Natural gas power also has risen so far this month despite being more costly than it was in the same periods of last year and 2019. Gas-fired generation averaged 4.45mn MWh/d from 1-20 June, compared with 4.2mn MWh/d and 4mn MWh/d in the same 20 days of 2020 and 2019, respectively.

 

Coal has gained momentum from nuclear generation, which slipped to an average 2.2mn MWh/d for the first 20 days of June from 2.24mn MWh/d in the same period of 2020 and 2.37mn MWh/d in 2019.

 

Hydropower generation also has fallen, likely reflecting drought conditions in parts of the west. Wind power, meanwhile, is averaging below year-earlier levels but above June 2019's average.

 

Total renewable generation was just over 2mn MWh/d from 1-20 June, compared with 2.2mn MWh/d in the same period of 2020 and 1.89mn MWh/d a year before that.

 

The increase in coal-fired generation this month is helping power plants continue to thin out stockpiles. A similar dynamic occurred following freezing temperatures in February. Coal inventories at US power plants fell by 16mn short tons (14.5mn metric tonnes) over the course of February, EIA data show. The only time power plants had a larger monthly drawdown was in July 2011.

 

The thinning stockpiles could lead to some additional coal purchasing in coming months. At least one buyer, East Kentucky Power Cooperative, is in the market for spot deliveries starting in August.

 

Prior to this month, coal-fired generation for the second quarter was topping the low levels set a year earlier when Covid-19 mitigation restrictions were tighter, but lagged 2019. June's demand has helped make up some of that gap.

 

Coal generation dispatch for 1 April-20 June averaged 2.19mn MWh/d, compared with 1.64mn MWh/d in the same period of 2020 and 2.29mn MWh/d in 2019. For April and May alone, coal generation average 1.98mn MWh/d, which was 11pc below the same period two years ago.

 

Total US power generation for the quarter to date averaged less than 1pc below 2019 levels in the first 20 days of this month, with natural gas, wind and solar taking some market share from coal.

 

Source : https://www.argusmedia.com/en/news