EIA: Some Planned Coal and Gas Plant Retirements May Be Delayed in 2026 as They Were in 2025

     The Energy Information Administration (EIA) notes that in 2025, there were planned retirements of 12.3 GW of coal and gas power-generating capacity, but only 4.6 GW was actually retired. This was a result of the DOE ordering plants to remain operational, presumably to preserve baseload power in case it is needed. The moves have been controversial, with some utilities saying it is costing them and their ratepayers money to keep those plants available. The 4.6 GW retired in 2025 was the lowest annual level of such retirements since 2008.

     In 2026, there are plans to retire 10.9 GW of power: 6.3 GW of coal (58%) and 4.6 GW of natural gas (42%). 3.5 GW of the 10.9 GW of planned retirements, or about one-third, includes plants that delayed retirement in 2025. The planned coal retirements in 2026 represent about 4% of total current coal capacity.

     The 4.6 GW of planned natural gas plant retirements in 2026 represent about 1% of the total gas operating capacity. EIA notes:

“Most of the retiring natural gas capacity (76%) is at older steam turbine units, which are less efficient than the newer combined-cycle units.”

     As the graph shows, nearly half, just under 5 GW, of the planned 2026 retirements are slated for December.

     It should also be noted that 7.7 GW of the planned 10.9 GW of planned 2026 retirements, or 71%, are delayed from the 2025 planned retirements. That means only 3.2 GW of new retirements are in the works for 2026.

     It should be pointed out that much of the coal and gas capacity slated for retirement is old, inefficient, costly to run, and currently has low or very low utilization rates.

     They note that two aging California gas plants with a combined capacity of nearly 1.4 GW are scheduled to retire after being delayed in 2020 and then in 2023 to support increasing power demand. More efficient combined-cycle units are being added at those sites. Gas plants scheduled for 2025 retirement in Illinois and Texas were delayed by the DOE.

     

 

 

References:

 

Retirement delays of U.S. electric generating capacity may continue in 2026. Energy Information Administration. Today in Energy. February 23, 2026. Retirement delays of U.S. electric generating capacity may continue in 2026 - U.S. Energy Information Administration (EIA)