OPINION:
The conflict in Iran and its ensuing economic impacts are stark reminders that energy abundance is key to energy independence and national security. Fortunately, the United States has abundant energy supplies. The U.S. has enough coal reserves to last more than 400 years, and enough natural gas to last nearly 100 years. We are undertaking a nuclear renaissance that seeks to quadruple our nuclear energy capacity over the next 25 years, and renewable power continues to grow. These abundant and diverse domestic resources make our nation’s energy system more resilient than most other countries, a fact worth celebrating. At the same time, we must be careful to avoid policies that limit our ability to take full advantage of these resources.
As the conflict disrupts global supply chains for oil and natural gas, countries that enjoy abundant supplies of domestic energy like the United States are better equipped to manage the fallout.
Unfortunately, the situation with Iran is not an isolated example of the fragility of international energy supply chains. The war in Ukraine led to a sharp decline in Russian natural gas exports to Europe creating expensive consequences for consumers. In the four years after the war began, household electricity prices in the EU increased by 30% and natural gas prices climbed by 79%.
The COVID-19 pandemic led to severe disruptions in the marketplace as electricity demand cratered and then rebounded dramatically. In 2021, a growing number of countries turned to coal to meet this newfound demand and global use of coal-fired power generation rose by nearly 9%, the largest annual increase on record.
Each of these resources brings their own strengths to the table. For example, coal used for electricity generation can be stored on-site and dispatched at any time, in any weather conditions, providing enhanced reliability and price stability. These attributes will become even more important as electricity demand continues to increase.
As the global marketplace confronts the energy disruptions created by conflicts in Iran and Ukraine, it must also contend with the rapid and sustained growth in electricity demand driven by the deployment of artificial intelligence. Global demand for electricity grew by 4.3% in 2024, the largest absolute increase in demand ever recorded. And this record demand is expected to continue, with the International Energy Agency forecasting that global electricity demand will increase at an annual rate of 3.6% from 2026-2030, driven by rising consumption from industry and data centers. And while renewables’ contributions to electricity generation will continue to grow, coal is expected to remain the single largest fuel source for power generation worldwide in that timeframe.
Demand for electricity is also expected to continue growing in the United States. By 2030, our domestic electricity demand is expected to grow by 25% and by 2050, it is expected to grow by 78% compared to current levels. This is largely due to the power demands of new data centers. The U.S. Energy Information Administration reports that “continued development of these large computing facilities and growth from expanded industrial use of electricity are likely to continue driving growth in U.S. electricity demand.”
This growth in demand for electricity makes it more important than ever to ensure that public policies are allowing the United States to utilize our domestic energy resources like coal. Unfortunately, some administrations did the opposite, working to enact policies that would force American coal plants to retire prematurely.
Nearly one-third of America’s coal fleet roughly 57 gigawatts is scheduled to retire by the end of the decade absent major policy changes, with more than half of the fleet facing retirement by the mid-2030s. For perspective, these premature coal retirements are the equivalent of shutting down more than 50 nuclear reactors. EPA rules have played a major role in forcing previous coal retirements.
Fortunately, President Trump is proactively working to repeal these onerous regulations that are threatening America’s energy supply. For example, EPA Administrator Lee Zeldin announced last June that the agency would repeal the Biden EPA Carbon Rule which would force the entire U.S. coal fleet to retire within a few years but do nothing meaningful to address climate change.
The Trump administration is also taking important steps to reinforce coal’s importance to national security. In March, the Defense Logistics Agency Energy, within the U.S. Department of War, issued a solicitation for a nationwide, coal-based power purchase agreement to support U.S. military installations. Utilizing the dependability of coal-based electricity is a sensible way to support our nation’s critical defense infrastructure.
The Iran conflict is again demonstrating on a global scale that electricity grids worldwide are best served by relying on resources that are readily available and capable of operating despite external disruptions. Coal uniquely provides these attributes.
It is vital that policymakers also recognize this reality and ensure the U.S. has policies that allow us to take full advantage of our abundant domestic coal resources.
• Michelle Bloodworth is president and CEO of America’s Power.
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