United State’s biggest public utility – TVA is closing down its 8 coal based boilers at power plants in Alabama and Kentucky, and planning for more coal usage cuts in coming years.
It is noted that US based Tennessee Valley Authority (TVA) is expecting to reduce dependency on coal to just 20% of the utility’s portfolio over the next decade. Currently, the company is depending 38% on coal.
For majority of electricity generation, TVA has relied on coal for decades.
On 14 Nov 2013, board meeting in Oxford, Ms. Bill Johnson (CEO) mentioned that the change is needed because power demand is down and environmental regulations are becoming stricter.
The board voting has decided to shut down all five coal-burning units at the Colbert plant in Tuscumbia, Alabama, one of two remaining units at the Widows Creek plant in Stevenson, Alabama, and two of the three units at the Paradise plant in Drakesboro, Kentuckey.
TVA board members from Kentucky and Alabama said voting in favor of the closures was a tough call because they will cost jobs in their communities.
The Kentucky units will be replaced by a natural gas plant, but more than 200 of the 400 jobs there, will be affected.
Colbert employs about 150 people, and Widows Creek employs about 175. Johnson said it was not immediately clear how many jobs would be lost at those two plants.
CEO said to media “More closures could be coming over the next few years.”
“If TVA were planning to keep the coal-burning units at Allen, Shawnee and Widows Creek open, they would expect the utility to be preparing to upgrade”, said by Mr. Stephen Smith executive director of the Southern Alliance for Clean Energy and a member of TVA’s Regional Energy Resource Council.
Mr. Stephen added “If they are not taking measures to retrofit these plants, you can deduce that they will retire them.”
“TVA is in coal country, yet it’s moving away from coal as a fuel source because it’s the right thing to do economically and environmentally.” Mr. Stephen added.
Daryl Dewberry, the United Mine Workers’ international vice-president for the Southeast, said “the decision was not a surprise because federal regulations are making it harder to burn coal. He also predicted that the move would increase the cost of energy.”
TVA has not abandoned coal totally. The utility is spending about USD 1 billion to upgrade a coal-fired plant in Gallatin, Tennessee and other units remain open.
As TVA is reducing energy from coal, they may expect to increase the percentage of nuclear power in the utility’s portfolio from about 32% to 40%.
One of the official said “there is no short-term need for the plant, but the utility intends to maintain it as a viable option for the future.”
-Sourced
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