DOE to invest $625 million to keep coal plants running

(The Center Square) – The U.S. Department of Energy said Monday it will spend $625 million on upgrades designed to keep coal plants online. It’s part of an effort the Trump administration says will prevent closures that could raise energy costs and threaten grid reliability.The funding includes $350 million for plant modernization, $175 million for projects to bring cheaper energy to rural communities, $50 million to upgrade wastewater management systems, $25 million to enable dual-fuel operations, and $25 million to maintain boiler efficiency and reliability when using natural gas.Energy Secretary Christopher Wright said on Fox Business that coal remains central to U.S. energy security. He described it as the “backbone” of steel and cement production and said it will continue to provide 15 to 16 percent of U.S. electricity.“We’re going to export more of that coal, we’re going to use it for American industry, particularly as we reindustrialize, and it’s going to continue to provide 15%-16% of our electricity and enable us to reindustrialize and win the AI race,” Wright said.Daniel Turner, founder and executive director of Power the Future, said the move reverses years of misguided policies. “For years, eco-elites cheered as coal plants were forced to close, leaving families stuck with higher bills and devastating communities, but now common sense is winning,” Turner said in a press release. “Americans know you cannot run a modern economy on failed promises and solar panels alone, so these plants will continue to pump out power as we work to meet the energy challenges of the future. This is a victory for workers and for anyone who flips a switch and expects the lights to come on.”The Energy Information Administration says coal is often the second-highest source of electricity in the United States, while wind and solar do not rank in the top three.A recent Power the Future report warned of a “looming electricity affordability crisis,” citing the closure of about 400 fossil fuel plants since 2010. It argued that reduced fossil generation has raised household costs and recommended keeping coal capacity online and expanding it.Wright said the administration’s plan also includes measures to ensure coal plants run more efficiently. “Coal just makes the world go round,” Wright said. “And they’ve tried to strangle it, particularly the Biden administration, starting with the Obama administration.”Let’s stop wishing it would go away,” Wright added of coal. “It’s critical to our country.”