Challenges in reopening shuttered coal plants amidst tough market conditions
The recent executive orders released by the administration come on the heels of a declared “energy emergency” in January. These orders aim to prevent the closure of coal-fired power plants and encourage the revival of recently shut down units to meet the anticipated growth in electricity demand. However, research by IEEFA suggests that the majority of the 102 coal-fired units that have closed in the last four years are not viable candidates for a restart. In fact, many of the currently operational coal facilities are operating well below their maximum capacity, making the decision to restart coal plants economically unfeasible.
IEEFA’s analysis focused on the 102 units that have a combined generating capacity of 36,566 megawatts (MW) and have been inactive since the beginning of 2021. Among these units, only a small fraction could realistically be brought back online. The study excluded plants that were closed over four years ago, as these units would likely require even more maintenance and be more costly to restart. Of the 102 units analyzed, 24 have been completely demolished, 13 have been converted to operate on gas, and one unit has been converted to run on fuel oil. The median age of these closed/converted units is 56 years.
The age of the closed coal plants is a critical factor to consider. With increasing age, maintenance costs escalate, driving up the overall generation costs of these facilities. The median age of the 102 closed/converted units as of 2025 is 56 years. Data from the U.S. Energy Information Administration (EIA) indicates that the average age of retired coal plants since 2000 has been around 50 years. Furthermore, a significant portion of the closed units, totaling 9,230 MW of capacity, have already been partially or completely demolished. Attempts to revive these units, like the former San Juan coal plant in New Mexico, would be impractical, as evident from the smokestack implosion showcased in photos.
In addition to the challenges posed by the age and state of the closed coal plants, restarting them would also face opposition from local communities and environmental concerns. The backlash against the coal industry is growing as communities and policymakers prioritize cleaner energy alternatives to mitigate climate change. The push towards renewable energy sources, such as solar and wind, is gaining momentum globally.
In conclusion, the administration’s plan to restart coal-fired power plants as a response to the energy emergency declaration is not a viable long-term solution. The economic impracticality, age, and condition of the closed units, coupled with the rising demand for cleaner energy alternatives, point to the need for a shift towards sustainable and environmentally friendly sources of electricity generation. The focus should be on investing in renewable energy infrastructure to meet the growing energy demands in a way that is both economically viable and environmentally responsible.