I was close to the process in shuttering two relatively new coal fire plants. I do not think it can be understated that government regulation and environmental pressure plays a role in these plants getting shuttered. The regulation that requires $800 million in new scrubbers and bag houses (the plants already had scrubbers and bag houses) makes them unprofitable and the environmental pressure makes them politically less palatable.Zobel said:
I don't think that narrative holds up. There are coal plants in operation, making money, all over the country -- including some still in Texas. What made coal unprofitable is the widespread installation of wind in Texas, combined with cheap natural gas, and the market structure ERCOT runs.
Wind cuts into baseload and also increases variability. In both cases that hurts coal plants, as they can't cycle rapidly. Modern combined cycle gas turbine power plants have very high efficiency, high turndown, and can ramp rapidly relative to a coal plant. That plus the stable low price of natural gas in Texas makes them a direct competitor to coal for baseload, as well as able to pair with wind to meet variability.
Those two plants (1500MW combined) would still be running today at a profit if not for those two circumstances that are completely outside the market.