EIA: Energy generation landscape changing
Tuesday, July 31, 2012
The U.S. Energy Information Administration anticipates that coal will not be as dominant an energy source in the future, with sources such as natural gas and renewable technologies playing a bigger role in electricity generation.
Coal is still expected to play a prominent role in energy generation through 2035, but is expected to continue its recent decline. In 2007, coal was responsible for 49% of total electricity generation, a percentage that dropped to 42% in 2011, according to the agency.
This shift is due to changes in the comparative costs of electricity generation, resulting from changes in natural gas prices, coal prices, economic growth and the implementation of the Cross-State Air Pollution Rule and the Mercury and Air Toxics Standards.
Projected fuel prices and economic growth are key factors influencing the future electricity generation mix. The price of natural gas, coal’s main competitor, has dropped significantly in recent years due to the increase in its domestic production.
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