King Coal is like a dead man walking; the battery storage has been on the move as well as the natural gas’s future in electricity business could be very meteoric. The latest data shows a radical change in how the United States generates power. In the most positive case for fossil fuels, the new technologies can as well as will easily slash the demand. Despite the US president, Donald Trump promising to be able to save the coal, the percentage of United States electricity that is generated from the coal has dropped from fifty percent in the year 2000 to around 25% this year. In the coming year, the coil’s market share is going to drop further to around 22% and this is according to the United States Energy Department.
5 coal mining companies have gone on to file bankruptcy this year. Well, more are likely to default on their bonds before the year ends. This is according to a credit rating agency by the name S&P Global. The latest casualty is Murray Energy, which is the 3rd largest coal producer, that is owned by Robert Murray, who is a very close ally to Trump. The existing coal-fired plants cannot even be able to compete with natural gas, and this is mainly due to the minimal-cost production from fracking. The new coal-fired plants cannot even be able to compete with the wind projects or even solar facilities that produce less expensive electricity in most areas, even without the federal tax credits.
In Texas electricity market, that is managed by ERCOT, there is no new coal or even nuclear plants which are planned, Almost all the new generation is under construction either wind or the solar, according to the data that is presented at GTM Power and the Renewable Conference in Austin off-late. The majority of new solar facilities are going to eventually include some batteries that are capable of keeping the lights on for a maximum of 4 hours, and this is according to the electric power developers at this conference. If they are able to become successful, these batteries will be able to reduce the electricity prices as well as lead to huge drops in the greenhouse gas emissions.
The electricity consumption patterns do help to explain how this is going to happen. The daily demands rise in morning when people wake up as well as prepare for the work, the plateaus at a very high level during an afternoon and then it drops when people eventually go to bed.
This post was originally published on Financial Sector