DOE Orders Last Coal-Fired Unit in Washington State to Remain Online

AI Summary

• •The U.S. Department of Energy (DOE) has ordered TransAlta, an IPP, to keep the 730-MW Centralia Unit 2, Washington State's last coal-fired unit, operational beyond its scheduled 2025 closure.
• •This federal intervention adds 730 MW of firm capacity to the Washington state grid, potentially impacting local capacity prices, deferring the need for new generation, and altering the economics for developers planning replacement resources.
• •The decision signals a direct federal policy shift by the Trump administration, prioritizing grid reliability over state-level decarbonization plans, introducing regulatory uncertainty for planned plant retirements and new project development.
• •While no new projects were announced, the continued operation of this large base-load unit could delay or alter the business case for planned renewable energy, storage, or natural gas projects intended to replace its capacity, affecting PPA negotiations and financing.

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