U.S. Electricity Generation: Coal vs. Renewables

Can Coal Maintain Its Lead Over Renewables in U.S. Power Generation?

Editorial Team (ET)June 19, 2025

Coal continues to play a significant role in the U.S. electricity generation landscape, holding about a 16% share. Despite a notable decline over the years, coal-fired power plants still generate more electricity than any single renewable energy source. While environmental campaigners push for a faster transition to renewables, the shift away from coal is not occurring as rapidly as they would prefer. Interestingly, coal-fired power generation may see a seasonal uptick in the summer, particularly during heatwaves when wind power might not suffice.

Current Status of Coal in U.S. Electricity Generation

Coal currently contributes to over 15% of the electricity mix in the United States. This is more than the contribution from any single renewable energy source, such as wind or solar. While all renewable sources combined surpassed coal-fired generation for the first time in 2022, coal alone still exceeds wind's 11%, hydropower's 6%, and solar's 4% share.

Trends in Coal Power Generation

The share of coal in the U.S. electricity generation mix has been on a steady decline, primarily due to the rise of renewable energy sources and the increasing use of natural gas. This shift is driven by rising natural gas production and falling gas prices, making it a more attractive option for electricity generation.

Renewable Energy vs. Coal

Renewable energy sources have seen significant growth in recent years. Wind, solar, hydropower, biomass, and geothermal energy collectively surpass coal in terms of electricity generation. However, individually, none of these sources have yet overtaken coal. This highlights coal's enduring role in the energy mix despite the advancements in renewable technologies.

Challenges in Phasing Out Coal

The decline of coal in the U.S. energy mix has been slower than many environmental advocates would like. Coal remains a critical source of baseload electricity, ensuring a stable and reliable power supply, especially during periods of high demand.

Biden Administration's Goals

The Biden Administration aims to achieve a zero-emission power grid by 2035. This ambitious goal faces significant challenges, as fossil fuels – predominantly natural gas and coal – currently provide around 60% of the total U.S. electricity generation. In 2023, natural gas accounted for 43% of the electricity mix, while coal contributed over 16%.

Seasonal Variations in Coal Consumption

Coal consumption typically decreases during the shoulder seasons of spring and autumn, when the demand for heating and cooling is minimal. However, coal-fired power generation could see a rise in the summer months, particularly if heatwaves strike regions where wind power cannot meet the increased demand.

Coal Capacity Retirements

In 2024, the Energy Information Administration (EIA) projects that operators will retire 5.2 gigawatts (GW) of U.S. electric generating capacity, with coal and natural gas accounting for 91% of these retirements. This is significantly lower than the 13.5 GW retired in 2023, marking the smallest amount of retired capacity since 2008.

Regional Dependence on Coal

Certain U.S. states heavily rely on coal for their electricity generation. North Dakota, Missouri, Kentucky, Wyoming, and West Virginia depend on coal for more than half of their power. This regional reliance complicates efforts to phase out coal, as these states face unique challenges in transitioning to alternative energy sources.

Impact of Data Centers on Power Demand

The explosive growth of data centers is putting additional strain on utilities, exacerbating the demand for a stable and reliable power supply. Data centers require substantial amounts of electricity, which is pushing some utilities to reconsider the pace at which they retire coal-fired power plants.

Utilities' Response to Growing Demand

In response to rising electricity demand, especially from data centers, some utilities are proposing the construction of new natural gas-fired capacity alongside renewable energy projects. Others are delaying the retirement of coal-fired plants to ensure grid reliability and meet the growing power needs.

Case Study: Evergy's Coal Operations

Kansas City-based utility Evergy announced in June 2023 that it would delay the retirement of its coal operations at the Lawrence Energy Center until 2028. Originally planned for retirement by the end of 2023, this decision was influenced by robust electricity demand growth in the region, driven by large projects like the Panasonic electric vehicle battery manufacturing factory and the Meta datacenter.

Future of Coal in U.S. Electricity Generation

Looking ahead, coal's role in the U.S. electricity generation mix is expected to continue declining, but not disappear entirely. Policy changes, technological advancements, and the growing demand for electricity from sectors like data centers will shape the future of coal. While the transition to a zero-emission power grid is underway, coal's contribution, though reduced, will still be a factor in the energy landscape for the foreseeable future.

Conclusion

Coal remains a significant player in the U.S. electricity generation mix, holding a larger share than any single renewable energy source. Despite the decline in coal usage, it continues to provide essential baseload power. As the U.S. aims for a zero-emission power grid by 2035, the journey to fully phase out coal will be gradual and complex, influenced by regional dependencies and growing electricity demands.

Joe BidenCoal

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