The Institute for Energy Economics and Financial Analysis (IEEFA) has done extensive research into the difficult circumstances facing Navajo Generation Station.
Kayenta Mine
IEEFA has concluded also that Kayenta mine in is not likely to find new customers or markets once its sole customer, Navajo Generating Station, closes. The same market conditions that are causing Navajo Generating Station to close have led to the announced retirements of at least 2,500 additional megawatts of coal-fired power in the Southwest.
Coal production at mines in the Southwest U.S. is declining. Production at 20 of the largest coal mines in the four-state region of Arizona, Colorado, New Mexico and Utah decreased from 66 million tons in 2014 to 45 million tons in 2016, a 32 percent decline. Production at Peabody Energy’s three mines in the region (Kayenta, El Segundo (in New Mexico) and Twentymile (in Colorado) dropped from 23 million tons in 2014 to 12.8 million in 2016, a 44 percent decrease.
Prudent Transition Now
While some politicians have called for federal subsidies to keep the plant running, IEEFA sees funds far better spent on a forward-looking transition plan that would help the Navajo Nation and the State of Arizona turn the page on this aging coal plant and its supporting mine.
IEEFA, in partnership with the Navajo Nation-based Diné Innovative Network of Economies in Hózhó (DinéHózhó L3C), has proposed a transition initiative that includes:
Full report “Why Navajo Generating Station Is No Longer Commercially Viable”
IEEFA’s reports on the Navajo Generating Station can be found at https://ieefa.org/category/subject/navajo-generating-station/
Contact: Karl Cates, IEEFA Media Relations, [email protected], (216) 714-3332