(WASHINGTON, DC) -- Coal and nuclear plant closures over the next five
years would have limited effect on the power grid, while keeping the plants
open would financially harm power plant owners, the giant credit ratings firm
Moody’s said in a report Friday.
What’s in a gigawatt? The new report focused on the impact of the
closure of 35 gigawatts of coal-fired and nuclear power plants that are slated
to go offline in the next five years, according to a summary of the report. A
gigawatt is enough electricity to power 700,000 homes.
Trump ordered Energy Secretary Rick Perry to take
steps to save the retiring coal and nuclear plants as a national security
imperative. The Federal Energy Regulatory Commission is working its own process
to understand the effects of the closures and respond if necessary.
“According to the report, the impact of these plant
retirements on power capacity in the US will be limited,” Moody’s concluded.
This is because approximately 32 gigawatts of new, mostly natural gas-fired
power plants now under construction would fill in the gaps left by the
closures.
More renewables: On top of that, about 72 gigawatts of renewable generation
“is either in advanced development or under construction, with the majority
slated for activation by 2020,” Moody’s said.
Too many power plants: If the coal and nuclear plants were to remain in the
market for reliability reasons, as the president would like, the “excess
capacity will continue to be a negative credit driver.”
Nuclear industry has a different opinion: Another study says the increased amount of natural gas
coming onto the grid poses a problem for reliability. And the nuclear industry
wants everyone to know about it.
The study was performed by the consulting firm ICF on behalf of
the Nuclear Energy Institute, the industry’s top trade group.
The study “details how a future gas pipeline
disruption, combined with continued nuclear power plant retirements, could lead
to prolonged electricity service disruption in the areas served by the PJM
Interconnection, the group said.
