Trump Demands Immediate Action to Prevent Closure of Coal and Nuclear Power Plants

The President of the United States has repeatedly made it clear that his priority for the energy sector is to keep coal and nuclear power plants up and running. Trump has ordered ‘immediate steps’ to prevent the closure of coal and nuclear power plants. The administration is now reviewing a plan to step in and manipulate the US electricity markets in order to support generators that are unprofitable.

A number of power industry groups have criticised the decision, saying that there is no need to interfere with the market and that doing so would inevitably raise prices for consumers.

The White House spoke on the topic, explaining that the impending retirement of coal and nuclear plants will have a serious impact on the resilience of the power grid. It said that coal and nuclear formed a critical part of the energy mix of the US.

This came in the wake of a leaked memo, which outlined arguments in favour of supporting coal and nuclear plants. It stated that an increase in gas-fired plants and renewable energy would jeopardise the resilience and security of the country’s energy supply.

The memo continued to highlight the importance of promoting national defence and would persuade the energy department to exercise its powers under the Defense Production Act of 1950. The powers would allow the department to delay retirements of fuel-secure electric generation resources.

For two years, grid operators would have to purchase their power for a specified list of coal and nuclear plants, created by the government. This would have the effect of keeping the plants in business.

This proposal has sparked outrage among activist groups representing renewable energy and natural gas. It was also criticised by PJM, the operator of the largest power grid in the country.

Thanks to the rise in shale gas and the decreasing costs of solar and wind, gas-fired plants and renewable energy sources have dominated investment in power generation in the US. Coal plants are finding it hard to compete with these modern and more sustainable energy sources.

Despite Trump’s pledge to reignite the coal industry, there has been little success. There are over 2,000 more employees in the sector now, since November 2016, but the industry is far from safe. In 2017, coal-fired plants provided 30% of US electricity. This year they are expected to supply 29%, showing that Trump’s plan to increase coal supply has not yet come to fruition.

Furthermore, planned closures of coal-fired plants will reach their peak this year, since 2015. The energy secretary, Rick Perry, put forward a plan last year to intervene in electricity markets to prop up coal and nuclear plants. However, this notion was rejected by the FERC (Federal Energy Regulatory Commission).

The statement released from the White House shows Trump telling Perry to prepare for immediate action to prevent the loss of these resources. But, the plans have not gone down well, with several high-up officials noting that the proposals are going to cost more for consumers and businesses alike.

Experts have said that there is no current threat to system reliability and therefore no justification for government intervention in the electricity markets. If the government did intervene and compel customers to exclusively purchase power from specified companies, the damage to the market would be severe and costly.