Trump Administration Mulls Coal, Nuclear Bailouts; Energy Groups React

  • Trump Administration Mulls Coal, Nuclear Bailouts; Energy Groups React

Trump Administration Mulls Coal, Nuclear Bailouts; Energy Groups React

White House Press Secretary Sarah Sanders said the president's action is due to a national security interest in securing the national power grid's resilience.

In a rare move, the Trump administration confirmed Friday that it will take "immediate steps" to prevent coal and nuclear power facilities in the USA from closing.

So what may that appear to be?

Over the two years in question, DoE officials would ostensibly research United States power grid network vulnerabilities, using the study as a justification to keep unprofitable and polluting power plants running as a matter of national security, according to Bloomberg.

The DoE memo suggests that USA energy grid operators could be compelled to purchase power from a pre-approved list over a two-year period, "to forestall any future actions toward retirement, decommissioning or deactivation", according to Ars Technica.

The placation of private thermal power companies from the Ministry comes in the wake of government's decision to make "out of turn coal allocation to government thermal power plant", which private power companies have labelled as "discriminatory and a distortion of a level playing ground based on ownership of the power generation plants".

The Division of Vitality didn't reply to a request for touch upon the memo.

"Any federal intervention in the market to order customers to buy electricity from specific power plants would be damaging to the markets and therefore costly to consumers", it added.

The EIA additionally stories that just about all energy vegetation that retired between 2008 and 2017 have been fossil gasoline vegetation and that nearly all vegetation that plan to shut earlier than 2020 use coal or pure fuel.

However, even as private and public thermal power companies report a sharp fall in coal stocks, the Coal Ministry has denied that there is a coal shortage in the country. The lawmaker, as a member of the Senate Energy and Natural Resources Committee, says he first encouraged Trump, Perry and U.S. Secretary of Defense James Mattis to examine the DPA in April.

"It is in regards to the nationwide safety of our nation".

However some teams that examine the US electrical grid say that it is not susceptible to breaking down in the way in which the directive describes.

Both Sen. Joe Manchin, D-W.Va., and Rep. David B. McKinley, R-W.Va., have been encouraging Trump to use his power under the Defense Production Act and the Federal Power Act to protect power plants already investing in emissions control.

As Trump's fossil-fuel energy mouthpiece, Perry earlier commissioned a study to identify regulatory causes for coal-plant closures, but no regulations were found; instead, cheap natural gas was observed to be responsible for widespread industry decline.

Another coalition of energy industry groups representing the oil, natural gas, solar, and wind industries issued joint statements saying the administration's plan is "misguided", "unwarranted", and "an exercise in crony capitalism".

"Arbitrary market interventions of this kind don't have any place within the electrical energy construction that has saved American electrical energy dependable and reasonably priced", the group's President and CEO Gregory Wetstone stated in an announcement.

Perry confirmed during congressional testimony last month that DOE was weighing its options for aiding coal and nuclear plants for national security purposes, including reviews of the DPA and FPA Section 202 (c).

Twenty-five coal plants have closed since he took office, as they face competition from natural gas, wind and solar power, the Times reported. "Trump will clearly", Mary Anne Hitt, the director of the Sierra Club's campaign to close coal facilities, said in a statement.