The Decline of Coal: Springerville Plant Signals a National Trend
The economic realities facing the Springerville coal plant in Arizona are a microcosm of a larger shift happening across the United States. Recent analysis highlights the increasing costs associated with coal-fired power generation, making it increasingly uncompetitive when compared to renewable energy sources and natural gas. The decision by the plant’s three owners to move away from coal underscores this trend.
Rising Costs and the Shift to Natural Gas
Tucson Electric Power, a co-owner of the Springerville plant, is proactively addressing these economic challenges by converting its share of the plant’s capacity to natural gas. This move isn’t simply about cleaner energy; it’s a pragmatic response to the volatile and rising costs of coal, coupled with concerns about the reliability of coal supply chains. The company recognizes that the current political and logistical landscape presents ongoing risks to coal delivery.
Beyond Springerville: A National Pattern
The issues at Springerville aren’t isolated. According to the Institute for Energy Economics and Financial Analysis (IEEFA), six units across four plants in the mountainous western region have already ceased burning coal in 2025. This signals a broader acceleration of coal plant closures. As plants age, maintenance costs increase, further eroding the economic viability of coal-fired power.
Renewables as a Competitive Alternative
IEEFA analysts suggest that operators like Springerville should seriously consider transitioning to solar energy coupled with battery storage. Solar power is now often more affordable than coal, and doesn’t carry the risk of fluctuating fuel costs. When combined with battery storage, solar becomes a dispatchable resource, capable of providing power when it’s needed most.
The Economics of Generation: A Cost Curve Analysis
A cost curve analysis by Tri-State Generation and Transmission Association, a co-owner of the Springerville plant, illustrates the economic pressures. The analysis shows that the Springerville Unit 3 was among the most expensive resources in their portfolio in 2024. Resources are dispatched based on cost, with the cheapest options – hydroelectric, solar, and wind – used first. More expensive resources, like coal and gas, are only used when demand is high. As coal becomes more expensive, it’s used less frequently, driving up the per-unit cost of electricity.
Tri-State’s Renewable Energy Commitment
Tri-State Generation and Transmission Association has announced plans to close its Unit 3 at Springerville and replace the power with 1,250 megawatts of renewable energy by 2031. This decision was made in collaboration with the nonprofit Western Resource Advocates, demonstrating a growing consensus around the necessitate for a transition to cleaner energy sources. The company is also exploring federal revenue opportunities through the Inflation Reduction Act to mitigate potential rate increases during the shutdown.
The Last Holdout: Salt River Project
With Tri-State and Tucson Electric Power committing to phasing out coal at Springerville, the Salt River Project (SRP) remains the only owner without a publicly announced retirement date for its unit. Advocates are urging SRP to follow suit and evaluate the continued reliance on coal-fired power from the plant.
The Future of Coal in the US
The Springerville plant’s situation is indicative of a larger trend: coal is losing its economic footing in the US energy market. While some argue for the continued use of coal for energy security, the economic realities are becoming increasingly challenging to ignore. The combination of rising costs, environmental concerns, and the decreasing price of renewable energy is accelerating the transition to a cleaner energy future.
FAQ
Q: Why is coal becoming less competitive?
A: Rising fuel costs, aging infrastructure, and the decreasing cost of renewable energy are making coal less economically viable.
Q: What is dispatchable energy?
A: Dispatchable energy is power that can be turned on or off when needed, unlike intermittent sources like solar and wind. Battery storage makes renewable energy dispatchable.
Q: What is the Inflation Reduction Act’s role in this transition?
A: The Inflation Reduction Act provides financial incentives, such as tax credits, to support the development of renewable energy projects and aid offset the costs of retiring coal plants.
Q: What will happen to the workers at plants like Springerville?
A: This is a critical question. Successful transitions require investment in retraining programs and economic development initiatives to support workers and communities affected by plant closures.
Did you know? The Springerville plant includes one of the newest coal units in the country, yet even this relatively modern facility is facing economic challenges.
Pro Tip: Keep an eye on utility Integrated Resource Plans (IRPs). These plans outline a utility’s long-term energy strategy and provide valuable insights into their future investments.
Learn more about the future of energy by exploring our articles on renewable energy technologies and grid modernization.
