When Coal Plants Shut Down, What Happens Next?

Some industry sources and analysts say the closing of coal plants will create an energy shortage and drive prices up. That could be an argument for developing new generation facilities on old coal plant sites. The options vary widely depending on a site's characteristics. Urban and suburban areas might be appropriate for solar farms, assuming tall buildings nearby don't obstruct the sun. State renewable portfolio standards, especially ones with solar carve-outs, can create a healthy market for solar energy, and by nature the old coal plant sites have ready access to the grid.

Most coal plant sites are too small and too close to residents to be turned into wind farms, but wind turbines might make sense on large plots in rural areas with good wind resources. Biomass generation might also be an option for old coal plant sites in agricultural regions, especially if they are on canals or major highways making transport of the biomass efficient.

It is also possible to convert coal-fired power plants to burn natural gas, but company officials at Midwest Generation, FirstEnergy, Dominion and GenOn all said the option was too expensive for the plants they are closing.