The outlook for the US coal sector usage has been reported by the US Energy Information Administration, and the report states that coal use in the United States is on the rise. Expectations are that the US Coal sector usage could increase by 7% if the forecast is accurate. The United States has relied on the coal sector to generate the power needed to supplement the insatiable energy appetite that the United States has experienced in recent years, and that reliance on Coal is only going to increase as we enter the second half of 2025.
Electricity generation has been growing rapidly this year in the United States, thanks to several factors
The advancements in the AI sector have required a new level of electricity generation in the United States. Data centers and server farms require massive amounts of energy to operate, and the effect has resulted in an increase in electricity generation in the US.
The US Energy Information Administration reported that coal consumption will total 439 MMst in 2025, a 7% increase over 2024 that reflects the impact of higher natural gas prices and an overall increase in electric power demand.
The EIA is reporting an increase in energy generation that is higher than they forecasted
At the beginning of the year, the EIA forecasted U.S. electricity generation would grow by an average of 1.5% each year. That initial forecast pales in comparison to the reality of the situation the US finds itself in.
The reality is that the growing tech industry, along with the large-scale coal consumers, has resulted in a 7% rise in energy production from coal plants this year. Which is significantly higher than the expectations laid out by the US Energy Information Administration. The EIA also reported that the renewable energy sector is on the rise as well.
“We expect that utility-scale solar will grow the most, generating 33%, or 72 billion kilowatthours (BkWh), more electricity this year compared with 2024.” – US Energy Information Administration
As we enter the fall season in the United States, the annual shutdown of several coal plants is expected to hamper the coal sector overall. At this time of the year, fossil fuel power plant operators take these plants offline for maintenance. The expectation is that coal-fired power plants will generate 9% (61 BkWh) more electricity for all of 2025 compared with last year.
Despite the fall closure, coal is still on an upward trajectory for the first time in a long timeframe
If the EIA forecast is correct, and we have no evidence to suggest that it isn’t, this year would be the first year-over-year increase in coal generation since 2021. Which is a remarkable factor to consider when we take a look at the high levels of energy demands coming out of America. The coal sector has been bolstered by the Trump administration’s new executive orders aimed at easing the regulatory barriers faced by the coal sector.
“Our expected 7% increase in consumption in 2025 outpaces the 2% increase in coal production that we forecast for 2025.” – United States Energy Information Administration
Coal remains as part of the American identity as Apple Pie
The United States has benefited significantly from the reliable energy that the coal sector has delivered for generations. From the Industrial Revolution all the way through to the digital one taking place at the moment, coal is as much a part of the American landscape as the Rocky Mountains or the huge Texas skyline. Several coal plants in the United States have been ordered to reopen and continue to produce coal-powered energy for the American citizen. With the news that coal usage will only increase this year, the coal-powered sector is as strong as ever in the United States.
