Coal generation has been irreplaceable this winter. Secretary of Energy Chris Wright even called it the “MVP of the huge cold snap” the nation faced in January.
Not only has this winter’s bitter cold underscored the importance of coal to the nation’s power supply, it has also served as a critical reminder of the importance of sound energy policy.
If the Biden administration had gotten its way, many of the coal-fired power plants that have come to the rescue over the past two months would have been sitting dark and idle as grid operators scrambled for electricity reserves that no longer exist.
The Trump administration’s efforts to prioritize the coal fleet to backstop grid reliability are already paying dividends. What’s more, the data show coal is playing a key role in tempering electricity price inflation. In fact, it was an irreplaceable price-shock absorber for consumers in 2025.
According to a new economic study, increased coal generation last year shielded consumers from a 26 percent rise in natural gas prices, delivering an estimated $30 billion to $40 billion in savings. The average household saved $100 to $150 on its power and natural gas bills. In states with greater access to coal power, where there was more opportunity for fuel switching, savings were far larger.
This economic analysis underscores the importance of optionality in the electricity marketplace and the value of coal generation as a buffer against natural gas price volatility. Even a small change in natural gas prices can have an enormous impact on the economy.
The Industrial Energy Consumers of America, representing 12,000 manufacturing facilities across the country, estimates that with just a $1 rise in the Henry Hub natural gas price, consumers pay, on average, $34 billion more for natural gas and $20 billion more for electricity. The U.S. Energy Information Administration sees the Henry Hub spot price for natural gas averaging $4.30 this year, after averaging $3.50 in 2025 and just $2.21 in 2024.
Ensuring coal generation is available to relieve pressure on natural gas demand — and meet soaring electricity demand — will be critical to affordability.
Driven by the AI revolution and the rapid data center buildout, electricity demand in the U.S. is expected to jump 25 percent by 2030 and nearly 80 percent by 2050. In some regions, where data center development is concentrated, demand is growing even faster.
Peak winter power demand is expected to increase by 245 gigawatts in the next decade — the equivalent of the power needs of 150 million homes. Meeting that demand reliably and affordably requires the coal fleet. It almost certainly requires getting even more power from it.
There are few options to bring more dispatchable power to the grid immediately. Coal plants are the exception. The underutilized coal fleet represents gigawatts of needed capacity hiding in plain sight that can reliably surge power when needed while simultaneously shielding consumers from potential price shocks.
For too long, policymakers began energy policy conversations by looking beyond coal. Now, America’s energy present and future need it more than ever. Fortunately, we are seeing a return to responsible energy policy that recognizes that reality.
