MARKETS

Arch angered by EPA

US COAL producer Arch Coal has expressed "deep and serious concerns" about the US Environmental P...

Lou Caruana

Existing regulations are expected to drive the shut-down of as much as 20% of America's coal-based fleet, which is the primary source of base-load power generation in the US, Arch senior vice president of strategy and public policy Deck S. Slone said.

“That's an unprecedented change to America's power system in what constitutes the blink of an eye in energy markets – creating enormous potential for market disruptions, supply shortages and rate spikes,” he said.

“Now, before this current round of closures has even run its course, EPA is preparing to step on the regulatory accelerator once again with the proposed Clean Power Plan.

“Such a move threatens to ratchet up the risk still further. The grid is already showing signs of strain, as we saw last winter when large sections of the US were pushed to the brink by bitterly cold weather and surging power demand.”

In addition to increasing the likelihood of "rolling blackouts or cascading outages," in the words of one regional transmission organisation, the Clean Power Plan is expected to drive double-digit increases in electricity rates in most states, according to Slone.

Given the long lead times and high capital costs required when adding capacity, the damage associated with another wave of power plant closures could take years to address and reverse, he concluded.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence: Automation and Digitalisation Report 2024

Exclusive research for Mining Magazine Intelligence Automation and Digitalisation Report 2024 shows mining companies are embracing cutting-edge tech

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets