According to forecasts from the US Energy Information Agency (EIA), electricity generated from coal in 2015 will see a decline of 8.2% compared to 2014, yet natural gas generation is set to rise by 14.5%. For 2016 however, the EIA projects coal generation will see a small increase of 1.4% and natural gas generation will decline by 3%, as a result of higher natural gas fuel costs.
In the last year, coal-fired electricity generation has been impeded by the retirement of certain coal-fired generating capacity but low natural gas costs has been the major obstacle aiding coal’s declining generation. During 1H15, coal accounted for 34% of total generation, whereas it was 40% during the same period last year, while natural gas accounted for 30%, increasing from 25% during 1H14.
