EPA's Cross-State Air Pollution Rule is leading to rapid change in the power generation stack in states across the U.S.
The U.S. electric power industry has been bracing for the impact of federally mandated emissions rules, especially since the Environmental Protection Agency (EPA) in July 2011 released an addendum to the long-standing Clean Air Act with the goal of reducing sulfur dioxide (SO2) and nitrogen oxide (NOx) emissions from power plants. Platts' Market Alert, Gas Burn Key as Emissions Fall in U.S., reveals that while those concerns continue to be real, much progress is being made to cut emissions.
This Market Alert notes how states’ power generation stacks are changing to adapt to federal regulations, which includes cutting emissions by increasing natural gas-fired power generation. Owners and operators of coal-fired power plants expect to retire approximately 27 GW of capacity from 175 coal-fired generators between 2012 and 2016, amounting to 8.5% of the total 2011 capacity. By the end of 2012, BENTEK expects less than 40% of U.S. electricity will be provided from coal-fired power, the lowest level since World War II. Natural gas' share of electricity production is expected to be around 30% by year-end 2012, up 10% since 2008.
Gas Burn Key as Emissions Fall in U.S. Market Alert is based on data available in GenCast™ database, which refines actual emissions and fuel consumption data from the EPA’s Continuous Emissions Monitoring System (CEMS) into a query-optimized format. GenCast provides a granular look at which states are in compliance with the CSAPR rule and which states have more work to do in cutting emissions.
This Market Alert also includes dynamic graphs and charts that allow you to click-through to an Analytical Storyboard™, where you can watch these market developments unfold over time.