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Coal plants are closing. What can be done with them?

By: Brandpoint

January 13, 2025 at 05:01 AM EST

(BPT) - The next generation of energy technologies is coming online, delivering energy that is more affordable, reliable and cleaner than ever before. But what happens to the older generation of power plants as they reach the end of their operational lives? What if those closures directly affected your livelihood - or the economy of your town? This is the challenge facing the power industry today. Nearly a quarter of coal plants in the U.S. are scheduled to be shuttered by 2029, according to the U.S. Energy Information Administration.

Many of these plants are the major employers in their small towns. What happens to those towns when the plants close? It means a loss of employment and it reverberates through all aspects of the community. Retail stores. Restaurants and diners. Everything in the local economy takes a hit when a major employer like a coal power plant closes.

But, what if those plants could be repurposed into something else? It would keep people working, the town diners hopping, the local merchants busy and everyone happy.

Coronado: A case study

That's just what's being studied at the Coronado coal power plant near St. John's, Arizona, which is scheduled to be retired in 2032. In a joint blog, the Bipartisan Policy Center and Terra Praxis highlight that Coronado is part of a study to repurpose coal plants into nuclear power plants, which would not only help keep the local economy humming, but also power the region with energy.

The study conducted by The Idaho National Laboratory's Gateway for Accelerated Innovation in Nuclear (GAIN) program highlighted significant regional economic and workforce benefits from transitioning the Coronado power plant to nuclear energy. GAIN compared the potential regional economic outcomes of allowing the existing plant to retire versus repowering it.

The findings suggest that a coal-to-nuclear conversion could prevent economic decline, help support regional growth and create additional employment opportunities, potentially surpassing the benefits of continued coal operations.

What's happening nationwide

With nearly a quarter of the U.S. coal-fired fleet scheduled to retire by 2029, replacing retiring coal power plants with advanced nuclear, specifically small modular reactors (SMR), has been put forth as a strategy to maintain local employment and economic opportunities for existing energy workers and communities, while simultaneously meeting the growing demand for reliable and resilient power and pursuing national climate goals.

Of those plants that are scheduled to retire, the Bipartisan Policy Center reports 80% of evaluated coal plants have the basic characteristics needed to be repowered by an SMR, according to a Department of Energy study analyzing recently and soon-to-be retired coal plants.

That means they have the location, land use types, energy output levels and other factors needed to convert them.

Why do it?

Potential benefits of coal-to-nuclear projects

The Bipartisan Policy Center and Terra Praxis outline several possible key benefits to these projects. According to their research:

Nuclear energy provides firm, dispatchable clean energy, maintaining grid reliability while pursuing climate goals.
77% of coal plant jobs are transferable to nuclear plants with no new workforce licensing.
Net increase of more than 650 jobs could be created in regions where SMRs repower retiring coal plants.
Jobs at nuclear plants provide higher wages compared to coal plants, which would boost local tax revenue.
SMRs can reuse coal plant transmission infrastructure, reducing SMR construction cost and avoiding some permitting challenges.
SMRs can reuse coal plant electrical equipment and steam-cycle components, which, combined with reuse of transmission and administrative buildings, can reduce SMR construction cost by 17% to 35%.

Challenges that remain

This effort isn't without challenges. Some hills to climb include:

Coal plant retirement and SMR operation dates must be aligned for a smooth workforce transition.
Licensing and technological infancy create uncertainties for SMR construction timelines.
Some coal plant positions will require extensive retraining or licensing to transfer to a nuclear plant, including operators, senior managers and technicians.
Some states have laws restricting new nuclear development, which can limit overall coal-to-nuclear opportunities.

The Bipartisan Policy Center is a mission-focused organization helping policymakers work across party lines to craft bipartisan solutions. By connecting Republicans and Democrats, delivering data and context, negotiating public policy, and creating space for bipartisan collaboration, BPC helps turn legislators' best ideas into durable laws that improve lives. Since 2007, the Bipartisan Policy Center has helped shepherd countless bills across the finish line.

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Coal plants are closing. What can be done with them?

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