AEP predicts stronger role for coal than previously thought

• 10 years ago (2014-04-10)
• Junior Isles

North America 1004

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Ohio based American Electric Power (AEP), one of the US’ largest power utilities, has updated its forecast energy mix for 2020, revising its estimate for coal-fired generation to 51 per cent from its previous projection of 46 per cent, according to company spokesperson Tammy Ridout.

In addition to coal generation not falling as much as originally predicted, AEP’s natural gas usage would be somewhat lower than in older projections, Ridout revealed.

"This balancing of our fuel resources and demand reduction efforts will move us forward on the path to continued carbon dioxide reductions, helping us achieve our voluntary 2020 goal to reduce GHG emissions by 10 per cent from 2010 levels," AEP said.

AEP still expects to close 2500 MW of coal-fired capacity, including 630 MW at West Virginia's Kammer plant. These closures are primarily down to needing to comply with the US Environmental Protection Agency's latest regulations aimed at curbing greenhouse gas emissions.

AEO has indicated that despite this, coal will remain one of its key energy resources due to its low costs. "Coal has to be part of the puzzle," said Nick Akins, chairman and chief executive of AEP at a recent conference in California.