America’s energy security – our access to affordable, domestic energy sources – is closely linked to our economic security, and a national discussion over what path America should take to achieve energy security has led some to debate the idea of “fuel switching.” These regulations and laws, which would force America’s power plants to replace their use of coal with less reliable, more expensive sources of electricity, would have significant negative impacts on our economy.
What are some of those impacts?
- More Expensive Electricity for Families, Job Creators: For working families, less money spent on electricity bills means more money for other household necessities. We need to continue providing businesses with a reliable supply of affordable electricity to get our economy back on track so we can maintain existing jobs and create millions of new ones. The cost of generating electricity from coal is one-third to one-fifth the cost of producing electricity from natural gas. If power plants are forced to switch from a stable, low-cost fuel to a fluctuating, high-cost fuel, many American families simply won’t be able to afford other household necessities they need today.
- Job Losses: According to initial findings from the National Economic Research Associates (sponsored by ACCCE), two proposed EPA regulations on power plants would lead to 13 percent of coal-fueled electricity generation decreasing over the next five years, being replaced by more expensive sources of energy. Every job that two proposed EPA regulations on power plants would create, four other jobs would be lost, with over 1.4 million job-years being lost from 2013 to 2020.
- Less-Reliable Electricity: Electricity is produced in baseload power and peaking power. Baseload power is the energy necessary to keep the electricity grid working around the clock to meet a constant demand. Peaking power is energy that comes on and off throughout the day, when electricity usage and energy demand goes up. Peaking power can use intermittent power sources like solar and wind that produce electricity only when there’s sufficient direct sunlight or sufficient sustained wind speed. While using renewable sources like solar and wind to diversify our peaking power is a great option when conditions allow, baseload power must use more reliable fuels such as coal, which can provide energy 24 hours a day. By reducing the place of coal as an option for baseload energy, electricity reliability could suffer.
For more facts about the coal-fueled electricity industry, and how it compare to other sources of energy, go to CoalFacts.org.
The American Coalition for Clean Coal Electricity (ACCCE) is committed to the idea that America can have the affordable, reliable electricity we need, with the clean environment we want. ACCCE’s Behind the Plug blog is the place for up-to-date news and analysis on clean coal technology developments and energy policy progress.