The push by U.S. President Donald Trump to revive the coal industry could potentially lead to higher electricity costs for consumers. As the global trend moves toward reducing coal dependency, Trump has reinstated coal as a central focus of U.S. energy policy. His administration’s efforts to rejuvenate aging coal facilities come amid growing concerns regarding the environmental and health impacts of coal production.
Upon taking office in January 2024, Trump declared an energy emergency, rapidly signing executive orders aimed at altering the energy landscape. One notable initiative was the April 2024 order titled “Reinvigorating America’s Beautiful Clean Coal Industry and Amending Executive Order 14241.” In this order, Trump emphasized that coal is both abundant and cost-effective, advocating for its role in enhancing U.S. energy security. He stated, “Coal is abundant and cost-effective, and can be used in any weather condition.”
Despite these assertions, experts caution that this renewed focus on coal may lead to increased electricity bills for consumers in the long run. According to analysts, maintaining and operating older coal plants could cost more than investing in renewable energy sources like wind and solar power. The Department of Energy (DoE) has been tasked with ensuring that coal plants remain operational, even those slated for closure.
In a July 2024 report, the DoE warned that the retirement of power plants could result in significant risks of blackouts by the decade’s end. The report’s findings have been met with skepticism by energy experts, who argue that the analysis relies heavily on worst-case scenarios and fails to account for the increasing capacity of renewable energy sources.
For instance, the DoE intervened to halt the closure of the J.H. Campbell coal plant in Michigan, despite warnings from the operating utility that shutting the facility could save consumers approximately $600 million. The DoE’s approach aligns with Trump’s commitment to bolster coal production, but it raises questions about the economic viability of investing in aging infrastructure.
A June 2024 report by the think tank Energy Innovation highlighted that coal power is becoming increasingly expensive. It indicated that coal power was projected to be 28 percent more costly in 2024 compared to 2021. The analysis revealed that 95 percent of the 162 U.S. coal-fired power plants still in operation at the start of the year were facing higher costs, with many experiencing increases at twice the rate of inflation.
Utilities across the country are also expressing concerns about the high operational costs associated with coal plants. Many have resorted to using coal only as a last resort when renewable sources cannot meet demand. The average age of coal plants in the U.S. is now 44 years, making them less efficient and more expensive to maintain. As these plants age, their generating capacity declines, leading to further inefficiencies.
In Georgia, for example, the Plant Bowen, initially scheduled for retirement in 2028, had its operational life extended to 2035. This decision came despite costs escalating from $46/MWh in 2021 to $72/MWh by 2025, coinciding with six electricity bill increases for Georgia Power customers between 2023 and 2025. Similarly, the Williams Station coal plant in South Carolina has seen its retirement date pushed from 2028 to at least 2031, with costs rising by more than 50 percent.
As President Trump continues to champion fossil fuels as a solution to the nation’s energy challenges, the financial reports from coal facilities suggest a different reality. While gas and renewable energy production costs continue to decline, the reliance on coal may not only harm the environment but could also burden consumers with higher energy bills in the future.
