Published December 2012
Coal-fired electric power generation is facing serious economic pressure in the United States. Low natural gas prices are predicted to continue into the indefinite future. In addition, the US Environmental Protection Agency (EPA) has issued plans for tighter restrictions on emissions. Combined, these two issues threaten the ongoing economic viability of many older US coal-fired power stations.
In this review we examine the incremental costs for various coal-related environmental remediation retrofits. We then compare these costs, when added to the levelized cost of electricity for a legacy coal-fired facility, to the levelized cost from a new natural gas combined cycle (NGCC) unit. In addition, we examine sensitivities to coal, natural gas, and potential carbon dioxide prices. This information allows us to estimate the "tipping point" where low gas prices, remediation requirements, and carbon costs combine to tip the economics in favor of closing the coal-fired plant and replacing it with an NGCC unit.
