Federal Subsidies For Coal Plants May Not Save Struggling Sector, Analysts Say
Markit·2026-06-10·via All Articles on Seeking Alpha
Summary
With hundreds of millions of dollars in additional federal subsidies recently announced for coal-fired power plants across the US, questions remain over whether the funding will move the needle for a sector that continues to lose ground to natural gas and renewables.
The S&P Global Market Indicative Power Forecast for the first quarter of 2026 shows coal generation in PJM declining from about 20% of the power mix in 2027 to about 10% by 2031 and dropping further after that.
In addition to the grants for existing coal plants, Trump said 42 coal mines would receive $700 million in federal support for upgrades to boost production.
The Trump administration's funding announcement also brought carbon capture projects back in view.
brianb2/iStock via Getty Images
With hundreds of millions of dollars in additional federal subsidies recently announced for coal-fired power plants across the US, questions remain over whether the funding will move the needle for a sector that continues to lose
