Coal Fuel Contracts: A Moving Target
In recent years, coal power generators have faced increasing difficulty predicting annual fuel requirements due to more cycling and low-load operation. That presents problems for the people negotiating fuel contracts. Not all mining companies are amenable to contract changes, but some unique solutions have been developed.
Remember when coal-fired power plants supplied baseload power 24/7/365 (when they were not offline for scheduled maintenance)? It seems like ages ago. Nowadays, load is as unpredictable as the weather, which is to say, if the sun is shining or the wind is blowing, renewable resources are often putting a crimp in coal-fired generation.
But renewable energy isn’t the only thing pushing coal plants to the sidelines; low-cost natural gas has played a role as well. Consequently, some gas turbines previously used as peaking units are now being dispatched for baseload power. That has meant various coal units have had to run at reduced loads or even to shut down for “economy” from time to time.…