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Redevelopment Playbooks: In the News
  • Pennsylvania Economic Playbook Calls for Repurposing Closed Coal Plants
    \- October 22, 2019 | Path to 100%
  • Pennsylvania Aims to Redevelop Coal Plant Brownfields \- August 12, 2019 | Control Global
  • Pennsylvania Promotes Playbook for Redeveloping Former Coal Plant Sites August 7, 2019 | Energy News Network
  • What Will Become of Retired Coal-Fired Power Plants? A New “Playbook” Outlines a Plan \- July 5, 2019 | Archinect
  • Finding New Opportunity for Old Coal-Fired Power Plant Sites \- May 23, 2019 | NPR
  • Redevelopment of Former Coal Plant Sites \- AreaDevelopment
  • Pennsylvania Creates a Prime Environment for Brownfield Redevelopment \- Sept. 28, 2018 | Construction Executive
  • Insights from Denise Brinley – Senior Energy Advisor, PA Department of Community and Economic Development \- July 2, 2018 | Buchanan Ingersoll & Rooney PC
  • As Coal-Fired Power Plants Switch Off, New Businesses Sought – April 21, 2018 | AP News
  • Power to These Sites: Former Coal-Fired Plants Get ‘Playbooks’ for Future – April 18, 2018 | Pittsburgh Post-Gazette
  • As Coal-Fired Power Plants Switch Off, Pennsylvania Looks to Bring in New Businesses – April 16, 2018 | Pittsburgh Post-Gazette

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After 54 years of providing power to Pennsylvania and New York, the Homer City Generating Station in Pennsylvania will close by July 2023, according to the plant’s owner. The plant is currently seeking approval from PJM, the grid manager in the region, to retire. The 1,888 megawatt coal plant began generating electricity in 1969, when Units 1 and 2 entered service. Unit 3 was added in 1977.

Coal plants across the country are retiring; U.S. coal-fired capacity has contracted from 313 gigawatts (GW) in 2005 to around 196 GW today. The Homer City coal-fired power plant was built before the turn of the century and was designed to provide base load power, operating nearly continuously to meet the minimum amount of regional power demand. Recently, coal plants have struggled to effectively compete in competitive U.S. power markets against newer, more efficient, natural gas-fired, combined-cycle power plants.

The Homer City plant was built near coal reserves and included what was then a high-capacity (345 kilovolt) transmission line to service areas in western New York and eastern Pennsylvania. For 30 years, the plant operated almost continuously, achieving a utilization rate, called a capacity factor, near 90%.

In 1999, the Homer City plant sold for $1.8 billion, corresponding to a period when Pennsylvania was deregulating its electricity market. At that time, coal-fired generation accounted for about 53% of the nation’s power supply; natural gas only accounted for about 12%. Since then, those roles have nearly reversed; natural gas is now the source of 40% of the electricity in the United States, and coal has dropped to 20%.

The market landscape changed for the Homer City plant at the turn of the century. New emissions standards for power plants under the Clean Air Act required the plant to install FGD scrubbers on Unit 3 in 2001 and on Units 1 and 2 in 2014. Pollution control upgrades in 2014 cost the plant owners a . Ownership of the plant changed after bankruptcy in 2017.

Driven by the ramp up of drilling and fracking to produce natural gas from the Marcellus and Utica shale formations in the region, many new natural gas-fired power plants were built in Pennsylvania. As new natural gas-fired plants were built, the Homer City plant was dispatched more intermittently for load following instead of for base load. This change increased annual maintenance costs for the Homer City plant, on top of the debt incurred from the pollution control upgrades.

Load-following plants adjust their power output as demand for electricity fluctuates throughout the day and by season. In contrast, base load power plants are usually run at near maximum output and are only taken offline to perform annual maintenance or repairs. As the Homer City plant became less competitive economically and was dispatched for load following rather than for base load power, the plant generated less electricity, and its capacity factor dropped. The Homer City plant was operated at an annual capacity factor of 82% in 2005. The capacity factor dropped to 20% in 2022, contributing in the decision to retire the plant.

The phase-out of coal dominates the current news on how to deal with climate change for good reason: because even though burning coal is the "dirtiest" way to generate electricity - causing severe damage to the climate, people, animals and the environment - there were still well over 1,000 coal-fired power plants in Europe as of March 2022.

Coal combustion

Coal-fired power plants are so-called steam power plants. In them, coal is burned to heat water and produce steam. The steam produced in this way sets turbines in motion. This mechanical energy is converted into electrical energy by generators. Coal-fired power plants specialise in processing either lignite or hard coal.

Phasing out electricity generation from coal

As of March 2022, there were 1,179 coal-fired power plants in Europe. According to a survey by the British think tank Ember, seven of the ten most climate-damaging coal-fired power plants in Europe operated in Germany in 2021. In 2021, Poland and Germany were responsible for 53% of emissions in the EU power sector.

In Germany, 96 coal-fired power plants are still connected to the electricity grid. However, the coal phase-out is a done deal. The last coal-fired power plant in Germany is to be shut down by 2038.

In Poland, 71 coal-fired power plants are still in operation and in 2021 70 % of the energy demand was still covered by coal. The phase-out is now planned until 2049.

However, the biggest environmental impact in Europe comes from the southeast. The 18 coal-fired power plants operating in the Balkan states emit two and a half times as much toxic sulphur dioxide as all 221 plants in the EU combined, according to data from the Centre for Research on Energy and Clean Air.

According to Statista, two-thirds of all coal-fired power plants worldwide are operated in China, India and the USA. Countries such as Austria and Belgium have already achieved coal-free status. In 2020, the last coal-fired power plant in Austria went off the grid. France and Italy are on the verge. In Norway, where hydropower plants cover about 60 % of Norway's electricity demand, coal-fired power generation plays no role in the electricity mix1. In Switzerland, there are no coal-fired power plants either.

Harmfulness of coal

No fossil energy source is as "dirty" as coal. In addition to the high CO2 emissions and the devastating negative effects on climate and air quality, coal mining, the effect on the environment and forests, and the damage to human and animal health are negative aspects of coal-fired power generation.