Coal could stay in the mix longer thanks to AI growth and grid stability needs

The growth of artificial intelligence has been a major topic in recent years. Alongside it, there has also been discussion about how to ensure sufficient electricity supplies for AI. The expected surge in electricity demand from data center operators could therefore keep coal-fired power plants running, and also bring decommissioned nuclear power plants back into the mix. Another factor, according to the US energy secretary, is ensuring the stability of the electricity grid.

According to Energy Secretary Chris Wright, the current US administration expects that most of the country’s coal-fired power plants will delay plans to close. One reason is said to be growing demand for stable electricity supplies for data centers. The government of Donald Trump has made developing the energy sector and ensuring energy supplies one of its top priorities.

"Energy realism has returned to Washington, D.C. We are focused on Americans, energy prices and preventing power outages. We must prevent existing reliable generation capacity from being shut down," Wright told Reuters.

According to the secretary, the government is in talks with many energy companies across the country and expects most of the several dozen coal-fired power plants nearing their planned closure dates to remain on the market. Wright said, however, that the government is prepared to use its emergency powers to prevent them from closing.

According to Reuters, the Department of Energy extended its order over the summer, preventing the closure of a coal-fired power plant in Michigan. The operator had planned to permanently shut down the plant for economic reasons. The department also prevented the closure of a power plant in Pennsylvania that burns natural gas and fuel oil.

According to Wright, the government also plans to support the development of nuclear power, including by changing the regulatory framework to speed up permitting.

"We need this industry as another source of energy, so we will support it temporarily to help it get off the ground," Wright said.

The coal mining sector will also receive government support

The US government recently unveiled a sweeping plan to revive the country’s coal industry. The new measures will open federal lands to coal mining. The US interior secretary said that extensive areas in North Dakota, Montana and Wyoming would be made available for coal mining leases. Overall, the area opened to mining is set to be more than three times larger than the land made available under earlier Trump-era legislation.