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Zero Hedge
ZeroHedge
7 Feb 2025


NextImg:America's Electric Grid Is At Risk - And We Need Coal To Save It

Authored by Emily Arthun via RealClearEnergy,

A recent report from the North American Electric Reliability Corporation (NERC) sounds the alarm: America’s power grid is becoming dangerously unreliable. The nation is hurtling toward a future where rolling blackouts and power shortages will be the norm rather than the exception. At the heart of this crisis is the closure of baseload coal plants, a move that is leaving our electric system vulnerable to demand surges and extreme weather events, and our people subject to skyrocketing electric bills.

NERC’s latest assessment reveals an unsettling reality: the rapid shift away from coal and other reliable baseload power sources is pushing our electric grid to the brink. More than half of the U.S. faces an elevated risk of power shortages, particularly during peak demand periods in summer and winter. The root cause? The aggressive push to retire coal-fired power plants without ensuring an adequate and reliable replacement.

While renewable energy sources like wind and solar are expanding, they are not yet capable of providing the always-available, on-demand power that coal and other baseload sources deliver. When the sun isn’t shining, and the wind isn’t blowing, grid operators must scramble to fill the gap. Too often, they are left with insufficient options, leading to potential shortfalls that can cripple homes, businesses, and critical infrastructure.

The Reliability Crisis

NERC’s findings make one thing clear: reliability is at stake. Energy demand is increasing exponentially, driven by factors such as electrification, population growth, and the rise of energy-intensive technologies like data centers. At the same time, dispatchable generation—power that can be turned on or off as needed—are disappearing.

This gap leaves the grid exposed to extreme weather events. In recent years, we have seen where coal has been there to keep our power flowing:

NERC warns that immediate action needs to be taken to shore up the grid with reliable, baseload power.

Why Coal Remains Essential

Coal has long served as the backbone of America’s electric grid, providing a stable and affordable power source that can be counted on during peak demand. Unlike wind and solar, coal generation is not subject to weather variability. Unlike natural gas, coal is stored on site and in the short term is not susceptible to supply chain disruptions or price volatility.

Despite this, policymakers continue to prioritize the rapid transition away from coal, often without considering the consequences. The closure of coal plants is driven by regulatory pressures, market distortions favoring renewables, and misguided environmental policies that fail to account for the grid reliability crisis.

The loss of coal-fired generation doesn’t just threaten reliability; it also drives up electricity costs for consumers. Without coal’s stabilizing effect on the market, electricity prices become more volatile, hitting households and businesses with higher bills.

Moreover, shifting too quickly to an over-reliance on renewables requires massive investments in energy storage, transmission upgrades, and backup power sources. These costs ultimately fall on ratepayers, making electricity less affordable for millions of Americans.

To avoid a full-blown reliability crisis, we must take a balanced approach to energy policy. This means:

NERC’s report should serve as a wake-up call. The U.S. cannot afford to gamble with its electric grid. Reliable and affordable power supply is not just a convenience—it’s a necessity for economic stability, public safety, and national security. Coal has been and should continue to be a key part of our energy mix, ensuring that the American citizen has access to reliable energy , even in the toughest conditions. Policymakers must act now to protect America’s energy future before it is too late. If not, the simple fact is that lives will be needlessly endangered.

Emily Arthun is CEO at the American Coal Council.