Over 12 GW of U.S. Electricity Generating Capacity Expected to Retire During 2025: EIA

U.S. electricity producers plan to retire 12.3 gigawatts (GW) of generation capacity during 2025, up 65 percent compared to retirements during 2024, according to an Feb. 25 report published by the U.S. Energy Information Administration. During 2024, 7.5 GW of generation capacity was phased out from the U.S. electricity grid, the lowest capacity of retirements since 2011. The assets leading the planned capacity retirements are fired mostly by coal (66 percent) and natural gas (21 percent).

Older coal fired power facilities are the focus of phase outs, since the older units are inefficient and face high operating and maintenance costs. Moreover, the increasing costs makes these facilities less competitive, compared to other sources of electricity generation, such as gas, solar or wind. An additional factor incentivising early retirement of coal power stations is regulation. Coal power stations must adhere to laws that limit the discharge of wastewater by 2028, implementing changes so that coal plants comply with these regulations requires additional capital expenditure.

Electric generators plan to phase out 8.1 GW of coal fired capacity during 2025, or 4.7 percent of the total U.S. coal fleet that was operating at the end of 2024. The largest U.S. coal asset that operators aim to phase out during 2025 is the 1,800-megawatt (MW) Intermountain Power Project in Utah. Michigan and Brandon Shores (1,273 MW) in Maryland are also expected to be phased out during 2025.

Electric generators plan to phase out 2.6 GW of natural gas fired capacity during 2025, or 0.5 percent of the total U.S. natural gas fleet that was operating at the end of 2024. V H Braunig Units 1, 2, and 3 in Texas are expected to account for 859 MW or over 62 percent of the natural gas retirements, while Eddystone Units 3 and 4 in Pennsylvania project to retire 760 GW of capacity.

Electric generators plan to phase out 1.6 GW of U.S. petroleum fired capacity. Over 50 percent of the retiring capacity is from the Herbert A Wagner power asset in Maryland, where Talen Energy aims to phase out three of its oil-fired units totaling 828 MW.