U.S. Coal-Fired Generating Capacity Retired in 2025 Was the Least in 15 Years

In 2025, the United States saw the retirement of just 2.6 gigawatts (GW) of coal-fired generating capacity, marking the lowest annual reduction in coal power in 15 years. Initially, operators had planned to retire 8.5 GW of coal capacity, but nearly half of these retirements were postponed, and some were outright cancelled. This slowdown contrasts sharply with 2022, when coal retirements peaked at 13.7 GW, reflecting a significant shift in the pace of coal plant closures. Only four coal-fired power plants ceased operations during 2025, including notable closures such as the Intermountain Power Project in Utah, which accounted for 1.8 GW of retired capacity. The Intermountain site partially offset this loss by commissioning a new 1,017 MW natural gas combined cycle plant. However, the overall transition away from coal was hampered by emergency directives from the U.S. Department of Energy, which compelled several coal plants to remain operational temporarily to maintain grid reliability amid concerns about energy supply stability. Several coal plant operators have deferred their planned retirements to 2026 or beyond, with some converting coal units to natural gas, such as the Transalta Centralia Generating Station in Washington, now scheduled for conversion in 2028. These delays and conversions indicate a more cautious approach to coal phase-out, influenced by regulatory interventions and the need to balance environmental goals with grid reliability and economic considerations. Looking ahead, the U.S. power sector anticipates retiring 6.4 GW of coal capacity in 2026, representing nearly 4% of the coal fleet active at the end of 2025. However, these projections remain subject to change depending on future policy decisions, market dynamics, and potential further emergency orders. The evolving landscape underscores the complexities involved in transitioning the nation’s energy mix while ensuring a stable electricity supply.