NLNNLNP

k bqi W = ~= ` m d = ~
Site Map

ABOUT NETL KEY ISSUES & MANDATES Secure & Reliable Energy Clean Pow er Generation Tow ard a Hydrogen Economy Climate Change Energy Efficiency Critical Infrastructure Assurance ONSITE RESEARCH TECHNOLOGIES ENERGY ANALYSIS NETL-RUA TECHNOLOGY TRANSFER SOLICITATIONS & BUSINESS EDUCATION AWARDS & RECOGNITION NEWSROOM CONTACT NETL

Home > Key Issues & Mandates > Secure & Reliable Energy Supplies > Market & Policy Drivers

Key Issues & Mandates Clean Power Generation - Market and Policy Drivers
By 2025, our Nation's consumption of electricity is projected to grow by 50 percent versus 2003 levels. To meet this rising demand, w hile also retiring inefficient older plants, 281,000 megaw atts of new pow er generation capacity w ill be needed by 2025 equivalent to almost 950 new pow er plants of 300 megaw atts each.1 Demand for electricity is grow ing even faster on a global basis particularly in developing countries. Coal reserves are abundant in the United States and in many areas of the w orld, making coal an attractive option for new pow er plants from the standpoint of affordability and supply reliability. Yet coal's considerable energy potential is accompanied by significant challenges related to its effects on the environment and human health.
CLICK ON GRA PHIC TO ENLA RGE

C oal is c ritic al to the ec onomy of the U nited States . C oal- fired generation and the U .S. gros s domes tic produc t (G D P ) have grown at nearly the s ame pac e over the las t 3 0 years .

CLICK ON GRA PHIC TO ENLA RGE

Advanced technologies w iden the policy options available for addressing this challenge. The President's National Energy Policy specifically endorses clean coal technology RD&D that can help pow er generators cost effectively meet environmental standards through improved efficiency and pollution controls. Coal pow er plants have been a cornerstone of our Nation's pow er generation capabilities for decades. In the future, they are expected to remain a major contributor to a diverse and reliable U.S. energy portfolio. Domestic coal is projected to remain plentiful and affordable for decades to come. Indeed, the United States has 272 billion tons of coal reserves w ith an energy value roughly comparable to all the w orld's know n oil reserves.2 Based on current rates of consumption, the U.S. coal supply could last

P roved res erves of domes tic c oal are more than 2 0 0 times that of oil and natural gas . Bas ed on c urrent rates of c ons umption, s upplies c ould las t another 2 0 0 years .

another 200 years.3 The United States is not alone in having rich coal

resources. About three-quarters of the w orld's total estimated coal reserves are outside the United States, including in rapidly grow ing countries. With international demand for electricity outpacing U.S. demand in coming decades, coal pow er generation is likely to grow dramatically in many regions. U.S. and international policymakers continue to seek options for reducing the environmental and health consequences of coal use. Federal R&D efforts focus on expanding the policy options available for economically and effectively addressing these issues. Advanced technologies can be instrumental in enabling tomorrow 's coal K K K Lhf L ~| K O NLP

NLNNLNP

k bqi W = ~= ` m d = ~ and effectively addressing these issues. Advanced technologies can be instrumental in enabling tomorrow 's coal pow er plants to meet current and pending regulations w hile providing the affordable electricity essential to economic vitality.

Meeting fast-growing electricity demand

Our Nation is projected to need 281,000 megaw atts of new pow er generation capacity by 2025. Natural gas technologies are expected to account for more than 60 percent of new capacity additions, and coal technologies for more than 30 percent (87,000 megaw atts). Coal-fired pow er plants are expected to continue supplying most of the Nation's electricity through 2025 despite rapid grow th in natural gas and modest grow th in renew able and nuclear pow er generation.4 Overall, coal consumption in the electric pow er sector is expected to grow as existing coal-fired plants are used more intensively and new ones are added after 2011. Of all the coal consumed in 2003, 92 percent w as used for electricity generation, and that share is expected to rise to 94 percent in 2025. While electricity consumption w ill grow at 1.8 percent annually in the United States betw een now and 2025, demand on a global scale is expected to rise markedly faster.5 In emerging and transitional economies, including China, India, and the former Soviet Union, electricity consumption w ill grow at more than double the rate in the United States. All of these regions have significant coal reserves and are expected to continue relying on coal for a large proportion of their electricity needs.

CLICK ON GRA PHICS TO ENLA RGE

T hrough 2 0 2 5 , c oal is projec ted to c ontinue meeting about half of U .S. elec tric ity demand.

Expanding policy options for environmental and health protection

Coal is a complex chemical latticew ork of carbon, hydrogen, and dozens of trace elements. When combusted, some of these elements, such as sulfur, nitrogen, and mercury, are converted to chemical forms that can create pollutants in the air and w ater. Carbon, the main constituent of coal, combines w ith oxygen from the air to form carbon dioxide w hich, in turn, can act as a greenhouse gas in the atmosphere. Policy efforts aimed at preserving U.S. air and w ater quality, protecting human health, and mitigating climate change have significant impacts on coal pow er generation. Current and proposed regulations w ill drive efforts to use coal more cleanly and efficiently. Air quality. Sulfur dioxide, nitrogen oxides, and particulate matter are three of six criteria pollutants the U.S. Environmental Protection Agency (EPA) uses as indicators of air quality. Emissions of the three are currently regulated from coal-fired pow er plants. President Bush's proposed Clear Skies legislation calls for further reductions in pow er plant emissions of sulfur dioxide and K K K Lhf L ~| K O

C oal is us ed in the U nited States today almos t exc lus ively for power generation.

O LP

NLNNLNP

k bqi W = ~= ` m d = ~ pow er plant emissions of sulfur dioxide and nitrogen oxides by setting a national cap on each pollutant. The proposed legislation also sets a cap for mercury emissions, w hich had not been previously regulated as a pow er plant pollutant. Water quality. The link betw een pow er generation and w ater quality is clearly recognized in President Bush's National Energy Policy. Fossil-fueled pow er plants account for approximately 39 percent of the w ater used in the United States, second only to agriculture. Most of the w ater is used for cooling. Water quality can be affected by the intake and discharge of cooling w ater as w ell as by pow er plant air emissions. Under regulations established by the EPA, several legislative acts potentially could impact w ater quality requirements and w aste use for fossil pow er generation. These include the Clean Water Act, Safe Water Drinking Act, and Resource Recovery and Conservation Act.

World elec tric ity demand will c ontinue to grow fas ter than U .S. demand.

E ven with c oal demand s teadily inc reas ing, emis s ions of c riteria pollutants are at their lowes t levels ever. N E T L RD &D will ultimately lead to c oal tec hnologies that res ult in near- zero emis s ions of all c riteria pollutants and C O 2 .

1 2 3 4 5

E nergy I nformation A dminis tration, A nnual E nergy O utlook 2 0 0 5 (referenc e c as e) C oal A Sec ure U .S. E nergy Sourc e, N ational C oal C ounc il A V is ion for A c hieving U ltra- L ow E mis s ions from C oal- Fueled E lec tric G eneration, C oal- Bas ed G eneration Stakeholders G roup, J anuary 2 0 0 5 E nergy I nformation A dminis tration, A nnual E nergy O utlook 2 0 0 5 (referenc e c as e) E nergy I nformation A dminis tration, I nternational E nergy O utlook 2 0 0 5

USA.GOV | U.S. DEPARTMENT OF ENERGY | DOE OFFICE OF FOSSIL ENERGY DOE OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY | OFFICE OF ELECTRICITY DELIVERY & ENERGY RELIABILITY Disclaimer | Privacy Policy | Web Policies | FOIA/Privacy Act | Employees Only

K K K Lhf L ~| K O

PLP