In Harrisburg, Pennsylvania, there is a renewed interest in coal-fired power plants due to the increasing demand for electricity to support the operations of tech giants’ cloud computing and artificial intelligence systems. The demand has sparked a need for new energy sources, transforming old coal-fired plants into valuable assets with their established high-voltage grid connections.
To address this opportunity, President Donald Trump is using his emergency powers to encourage utilities to keep older coal-fired plants operational. Although some utilities are already delaying the plants’ retirement, external entities such as tech firms, venture capitalists, and several states are showing interest in revitalizing these sites. This comes as these sites offer a direct connection to existing power grids, providing a foundation to introduce various new energy sources like gas, nuclear, solar, and battery storage.
A significant hurdle in the past has been the lengthy permitting process required for constructing new high-voltage lines, an issue that experts like John Jacobs from the Bipartisan Policy Center highlight as a critical bottleneck. Jacobs stresses the strategic importance of repurposing these brownfield sites to address burgeoning energy needs more effectively.
The shutting down of coal plants was initially anticipated to accelerate, especially with the competing cheap natural gas and stringent environmental regulations. However, this comes at a time when electricity demand is on the rise. The Department of Energy has signaled an intention to reuse these plants as part of its strategy to meet the growing energy demands, with additional incentives like tax credits and loan guarantees aimed at encouraging their redevelopment.
President and CEO of the Electric Power Supply Association, Todd Snitchler, mentions that while Trump’s policies may prolong the lifespan of some coal-fired plants, most are still on a path to retirement. Rapid development of power plants is urgent, as data center projects face delays of up to a year in connecting to the grid.
Stephen DeFrank, chairman of the Pennsylvania Public Utility Commission, remarks on the increased worth of these sites due to changes in grid operator plans that favor retired plants, making them ideal candidates for new projects. In Pennsylvania, the trend leans towards converting to natural gas, benefiting from the Marcellus Shale reserves. The South is similarly transitioning, with numerous utilities replacing coal units with gas.
In addition to natural gas, other projects are harnessing the grid connections of former coal sites for different energy innovations. Some examples include offshore wind farms in the Northeast, Alabama’s first large-scale battery plant, and Illinois firms investing in solar and energy storage, often supported by state aids.
Nuclear energy is also being seriously considered for these sites. Legislative efforts in Arizona aim to smooth the regulatory path for advanced nuclear reactors at coal plant sites. Purdue University’s examination of Indiana’s potential for a nuclear industry suggests reusing coal sites could significantly reduce the costs of nuclear projects by leveraging existing infrastructure.
The appeal of converting coal sites lies not only in cost savings but also in the prospects for local employment. As former coal plant workers possess relevant skills, they could be trained to transition to roles in the nuclear sector, notes Kathryn Huff, an expert from the University of Illinois.
Former coal towns, facing economic decline, are now seeing a ray of hope. In Homer City, Pennsylvania, after years of downturn following coal plant closures, a major renewal project is transforming the area—a $10 billion investment in a natural gas-powered data center and plans for it to become the third-largest power generator in the country. This has stirred optimism within the community about potential economic revitalization, increased school enrollments, and a resurgence in local businesses, as highlighted by the town manager, Rob Nymick.
This period of transformation hints at a significant shift within the U.S. energy landscape, one in which old coal-fired plant sites become a linchpin in addressing future energy challenges while offering new opportunities for growth and innovation within local economies.