US Slows Plans To Retire Coal-Fired Plants as Power Demand From AI Surges

The staggering electricity demand needed to power next-generation technology is forcing the US to rely on yesterday's fuel source: coal. From a report: Retirement dates for the country's ageing fleet of coal-fired power plants are being pushed back as concerns over grid reliability and expectations of soaring electricity demand force operators to keep capacity online. The shift in phasing out these facilities underscores a growing dilemma facing the Biden administration as the US race to lead in artificial intelligence and manufacturing drives an unprecedented growth in power demand that clashes with its decarbonisation targets. The International Energy Agency estimates the AI application ChatGPT uses nearly 10 times as much electricity as Google Search. An estimated 54 gigawatts of US coal powered generation assets, about 4 per cent of the country's total electricity capacity, is expected to be retired by the end of the decade, a 40 per cent downward revision from last year, according to S&P Global Commodity Insights, citing reliability concerns. "You can't replace the fossil plants fast enough to meet the demand," said Joe Craft, chief executive of Alliance Resource Partners, one of the largest US coal producers. "In order to be a first mover on AI, we're going to need to embrace maintaining what we have." Operators slowing down retirements include Alliant Energy, which last week delayed plans to convert its Wisconsin coal-fired plant to gas from 2025 to 2028. Earlier this year, FirstEnergy announced it was scrapping its 2030 target to phase out coal, citing "resource adequacy concerns." Further reading: Data Centers Could Use 9% of US Electricity By 2030, Research Institute Says.

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