Utility trends

IEEFA Research

Why Navajo Generating Station Is No Longer Commercially Viable

Why Navajo Generating Station Is No Longer Commercially Viable

The Institute for Energy Economics and Financial Analysis (IEEFA) has done extensive research into the difficult circumstances facing Navajo Generation Station. Key findings: Declining energy market prices and rising production costs have made power produced by the plant more expensive than competing sources. Market trends are not likely to change, leaving the plant’s financial viability […]

August 16, 2017 Read More →
IEEFA Indonesia: A Potential Overcommitment to Coal-Fired Electricity Puts a Nation at Risk

IEEFA Indonesia: A Potential Overcommitment to Coal-Fired Electricity Puts a Nation at Risk

Out of Step With a Global Shift in the Energy Economy

We’ve just published a report that calls into serious question Indonesia’s plans to expand its commitment to coal-fired electricity generation. The report—“Overpaid and Underutilized: How Capacity Payments Could Lock Indonesia Into a High-Cost Electricity Future”—analyzes Indonesia’s 2017-26 national energy blueprint and shows how long-term coal power contracts that the country is contemplating will not just […]

August 10, 2017 Read More →
IEEFA Report: Kayenta Mine Is Unlikely to Find  New Customers Once Navajo Generating Station Closes

IEEFA Report: Kayenta Mine Is Unlikely to Find New Customers Once Navajo Generating Station Closes

A ‘Buyer Beware’ on Peabody Energy Property; Regional Demand for Coal Is in Decline; Export-Market Possibilities Are Bleak; Previous Recent Mine Deals Have Failed

June 29, 2017 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis (IEEFA) published a report today concluding that Peabody Energy’s Kayenta mine in northeast Arizona is not likely to find new customers or markets once its sole customer, Navajo Generating Station, closes. The Navajo Nation Council voted this week to approve a deal with […]

IEEFA Report: ‘Natural Security’ Argument for Saving 2 Power Plants Is a Red Herring Meant to Distract From an Ohio Valley Electric Bailout

Keeping Kyger Creek and Clifty Creek on Life Support Would Cost Ratepayers $1.4 Billion; Market Conditions Will Continue to Undermine Viability of Aging Coal-Fired Plants; Public Resources Are Better Spent on Investing in Transition; Neither Generator Is Needed for Grid Stability

June 20, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) today published a research brief questioning a bill in the Ohio legislature that would bail out two failing coal-fired power plants owned by the Ohio Valley Electric Corporation (OVEC) and keep the plants alive at huge expense to ratepayers. The plants […]

IEEFA Report: ‘Payment for a Job Well Done,’ a Transition Plan in Anticipation of Shutdowns of Navajo Generating Station and Kayenta Mine

IEEFA Report: ‘Payment for a Job Well Done,’ a Transition Plan in Anticipation of Shutdowns of Navajo Generating Station and Kayenta Mine

Initiative to Limit Job Losses and Community Disruption; Investing in Economic Growth Rather Than Subsidizing Northern Arizona's Failing Coal Industry

June 6, 2017 (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) today published a report outlining an economic- growth strategy for a region that stands to be set back severely by the closure of the Navajo Generating Station and the Kayenta coal mine. The proposal—“A Transition Plan for Communities Affected by the […]

IEEFA Update: As Australia Fights a Domestic Gas Shortage, New Export Plants Are at Risk of Closure

IEEFA Update: As Australia Fights a Domestic Gas Shortage, New Export Plants Are at Risk of Closure

‘Fiddling Around and Allowing the Cartels to Fleece Consumers’

nJune 5, 2017 (IEEFA.org) – The Institute for Energy Economics and Financial Analysis today published a report detailing how a complex of expensive new liquefied natural gas plants on the east coast of Australia are struggling to stay open in the face of a global gas glut. The report—“Australia’s Export LNG Plants at Gladstone: The […]

IEEFA Report: ‘End of an Era’ for Navajo Generating Station; Vast Subsidies Would Be Required to Keep Aging Plant Online; Retirement Seen as Most Viable Option

IEEFA Report: ‘End of an Era’ for Navajo Generating Station; Vast Subsidies Would Be Required to Keep Aging Plant Online; Retirement Seen as Most Viable Option

‘No Longer Competitive’ With Rise of Natural Gas and Renewables; Staying Open Through 2022 Would Require a $740-Million-to-$1-Billion Subsidy; Through 2030 Would Require a $1.4 to $2.4 Billion Subsidy

May 10, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis today published a report detailing how the failing coal-fired Navajo Generating Station in northern Arizona will require hundreds of millions of dollars in subsidies to remain online for any length of time. The report—“End of an Era: Navajo Generating Station Is No […]

IEEFA Research Brief: Coal in Decline, Blow by Blow

IEEFA Research Brief: Coal in Decline, Blow by Blow

Plant Closings and the Likely Effects on Specific Companies and Mines

We’ve published a research brief today that presents an expansive snapshot of a moving target: the decline in U.S. coal-fired generation nationally. As global energy markets continue to undergo rapid transformation, change has swept the U.S. as well. Our brief—“U.S. Coal Phase-out, Blow by Blow: Plant Closings and the Likely Corresponding Effect on Specific Companies […]

April 21, 2017 Read More →
IEEFA Report: A Renewables Path to Japanese Energy Security in a Post-Nuclear Era

IEEFA Report: A Renewables Path to Japanese Energy Security in a Post-Nuclear Era

Eliminating High-Risk Dependence on Imported Fuels; Exploiting Domestic Technology Advantages; Avoiding Stranded Assets in Misguided Coal Projects

We’ve just published a report that details how Japan’s post-nuclear electricity-generation economy can be viably retooled around renewable energy. Our report—“Japan: Greater Energy Security Through Renewables: Electricity Transformation in a Post-Nuclear Economy”—emphasizes the potential for national energy security through renewables, most especially wind and solar. This report documents how government policies adopted in the wake […]

IEEFA Report: A U.K. Electricity Transformation Under Way, But in Need of Better Direction

IEEFA Report: A U.K. Electricity Transformation Under Way, But in Need of Better Direction

Grid Proves Resilient in Face of 60% Drop in Coal Use in 2016; New Renewables and Interconnection Are the Future; Capacity Market Has Failed to Incentivize Modernization; More Targeted Auctions Would Help

The U.K.’s capacity market is the weak link in the country’s ongoing transition toward a resilient, low-carbon grid. That is one of the core findings in a  report—“Electricity-Grid Transition in the U.K.: As Coal-Fired Generation Recedes, Renewables and Reliable Generation Can Fill the Gap —we published today. The report finds that the U.K. grid is coping […]

March 9, 2017 Read More →

More News and Commentary

Why Navajo Generating Station Is No Longer Commercially Viable

Why Navajo Generating Station Is No Longer Commercially Viable

The Institute for Energy Economics and Financial Analysis (IEEFA) has done extensive research into the difficult circumstances facing Navajo Generation Station. Key findings: Declining energy market prices and rising production costs have made power produced by the plant more expensive than competing sources. Market trends are not likely to change, leaving the plant’s financial viability […]

August 16, 2017 Read More →

The Problem for Coal and Nuclear: ‘Capital, With Its Lust for Growth, Continues to Migrate Elsewhere’

Bloomberg Businessweek: U.S. electricity demand has stopped growing over the past decade, partly due to recession but more a reflection of structural changes in the economy and rising efficiency. Its tough to make the economics of  a new nuclear or coal-fired plant work. By the time they are permitted and built, it can be many […]

August 16, 2017 Read More →

On Earnings Calls, U.S. Utility Execs Talk Now of Transition

SNL: When power generators talked about coal on second-quarter earnings calls, many were talking about moving away from the fuel, an S&P Global Market Intelligence review of recent earnings reports found. While the coal sector has enjoyed a lift from improvements in international demand for metallurgical coal, U.S. producers have historically played a somewhat limited […]

August 16, 2017 Read More →

Editorial: The Solar Pocketbook

Aiken (S.C.) Standard: MTU America flipped the switch last Wednesday in celebration of its new solar panel field in Graniteville. To create the solar panel field, MTU America collaborated with Sol America, SCE&G, the South Carolina Department of Transportation, Key Equipment Finance and Aiken County. They were praised by S.C. Gov. Henry McMaster for working […]

August 16, 2017 Read More →

Kuwait in $1.2 Billion Solar Tender Offer

Bloomberg News: Kuwait will issue a tender to build the estimated $1.2 billion Dibdibah solar-power plant in the first quarter of 2018 as part of the country’s plans to produce 15 percent of power from renewable energy by 2030. OPEC’s fifth-biggest oil producer set a Sept. 7 deadline for companies to express interest in the […]

August 16, 2017 Read More →

IEEFA Update: Even Coal-Mining Companies Are Complaining About the Price They Pay for Coal-Fired Electricity

Anecdotes of Note, and Some Irony, in Company Filings

Public filings by U.S. coal-mining companies disclose vast data that is crucial to investors—which is the point of having such information publicly available. They also yield revealing anecdotal notes that add perspective and depth to the numbers, and that include wrinkles of irony sometimes. Some coal-fired power has gotten so expensive that coal producers are […]

August 15, 2017 Read More →

On the Blogs: ‘Powering the Next Billion Consumers Will Look Very Different Than Powering the First’

Bloomberg New Energy Finance: More than a billion people worldwide live without reliable access to electricity. Providing them with power will require hundreds of billions of dollars of investment, vast deployment of technology, and adaptable business and financial market strategies. Much of the job can be done with power generation systems that are not connected […]

August 15, 2017 Read More →

China Hits Pause on Coal-Fleet Expansion

Xinhua (China State News Agency): China is holding back on building new coal-fired power plants to avoid risks from overcapacity and promote a clean energy mix. A total of 150 million kw of new coal power generation capacity will see construction halted or postponed from 2016 to 2020, the 13th Five-Year Plan period, according to […]

August 15, 2017 Read More →

Bipartisan Move in Congress to Thwart Trade Petition Aimed at Driving Up Solar-Panel Prices

Washington Examiner: Republican and Democratic lawmakers on Friday defended U.S. installers of rooftop solar panels and made an effort to beat back a pending decision that could make imported solar panels more expensive. Bipartisan letters from 16 senators and 53 congressman were sent to International Trade Commission Chairman Rhonda Schmidtlein, and urged the agency to […]

August 14, 2017 Read More →

Ohio, ‘for Ideological and Political Reasons,’ Ranks 46th in Utility-Scale Wind Capacity

Cleveland Plain Dealer: Ohio businesses, farmers and industries have been installing small, medium and even large wind turbines for more than a decade, and the state is now ranked sixth in the nation for the amount of power these turbines can generate for on-site use or nearby delivery. In an annual market report issued this […]

August 14, 2017 Read More →