Power companies offer $500 million to shut down 3 coal-fired power plants In the US

Power companies in the state of Colorado are proposing to buy three coal-fired power plants and, instead, build renewable energy facilities, gas-fired thermal power plants and energy storage systems.

A proposal to buy out coal assets for the purpose of closing them came from Guzman Energy from Miami. Previously, it has already offered similar in the state of New Mexico.

The company is willing to pay about $500 million to Tri-State to buy out three coal-fired power plants and a coal mine that supplies them with raw materials in order to close this “dirty” production.

Instead of coal facilities, Guzman Energy intends to build combined facilities that combine wind, solar, gas generation and storage systems. As a result, the company Tri-State will get cheaper electricity  than the one that is generated from coal now.

The total capacity of decommissioned coal generation is 800 MW, and the capacity of the new generation (with the promised share of renewable energy of 70%) is 1200 MW.

Coal TPPs are not experiencing the best times in the United States, their electricity is often more expensive than competitors from the gas and “green” industries, and aging equipment requires additional costs.

Last year, almost a record 16 GW of coal capacities was closed in the United States.

Tri-State itself this year closed two coal-fired thermal power plants, but coal still accounts for about 50% in the company's energy balance.

There is no response to the offer to buy out coal assets yet.  Tri-State says that the proposal has not yet been drawn up on paper, and the market has not yet been studied (maybe someone will offer more).

In Colorado, a draft law has been adopted, according to which by 2040 all generation should be carbon neutral and one of the TPPs for which the ransom is being offered should be closed as early as 2025.

 

Source: coloradosun.com

 

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Tags: renewable energy, coal mining

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