COAL POWER 28 PERCENT MORE EXPENSIVE IN 2024 THAN IN 2021

This report by Energy Innovation analyzes the rising costs of coal-fired power generation in the United States between 2021 and 2024, concluding that coal is becoming increasingly uneconomic compared to alternatives like wind, solar, and natural gas.

• The average cost of generating power from coal in the United States increased by 28 percent between 2021 and 2024, rising from $36/MWh to $46/MWh. This growth rate significantly exceeded the Consumer Price Index inflation rate of 16 percent for the same period. This increase resulted in coal plant owners spending over $6.2 billion more in 2024 to generate 622 million megawatt hours of power than they would have in 2021.
• The cost increase was widespread across the U.S. coal fleet; of 162 plants analyzed (representing 181 GW of capacity) operating at the start of 2025, 95 percent were more expensive to operate than in 2021. Furthermore, 76 percent of these plants saw costs rise faster than inflation, with nearly half experiencing cost increases that were double the inflation rate.
• Regional cost variations show that the Mid-Atlantic, Southeast, and Southwest had the highest costs, with Delaware and New Hampshire averaging the highest costs in 2024. Specific plants saw dramatic increases: Georgia's Plant Bowen rose from $46/MWh to $72/MWh, and the Hunter and Huntington plants in Utah saw costs nearly double from approximately $30/MWh to over $60/MWh following the 2022 fire and subsequent idling of the Lila Coal Mine.
• Despite poor economics, federal policy under the Trump administration in April 2025 issued executive orders to keep coal plants running, including reducing the number of plants subject to EPA Mercury and Air Toxics Standards. This has already affected the J.H Campbell plant in Michigan, which was ordered to remain open despite being scheduled for closure on May 31.
• The report identifies several drivers for the cost increases, including higher fuel prices (particularly in Appalachian regions due to mining depth), increased operations, maintenance, and capital costs for aging plants, and lower average capacity factors, which dropped from 46 percent in 2021 to 38 percent in 2024.

APA

Energy Innovation (n.d.). COAL POWER 28 PERCENT MORE EXPENSIVE IN 2024 THAN IN 2021. https://energyinnovation.org/wp-content/uploads/Coal-Cost-Update.pdf

Chicago

Energy Innovation. COAL POWER 28 PERCENT MORE EXPENSIVE IN 2024 THAN IN 2021. n.d. https://energyinnovation.org/wp-content/uploads/Coal-Cost-Update.pdf.

Wikipedia

{{cite report |author=Energy Innovation |title=COAL POWER 28 PERCENT MORE EXPENSIVE IN 2024 THAN IN 2021 |url=https://energyinnovation.org/wp-content/uploads/Coal-Cost-Update.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{energyinnovationndcoal, author = {{Energy Innovation}}, title = {{COAL POWER 28 PERCENT MORE EXPENSIVE IN 2024 THAN IN 2021}}, institution = {Energy Innovation}, url = {https://energyinnovation.org/wp-content/uploads/Coal-Cost-Update.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }