June 5, 2025 - While President Donald Trump is pushing to prop up the US coal industry, generating power from the dirtiest fossil fuel is becoming increasingly expensive and uncompetitive, according to a new report.

Generating electricity from coal cost $46 per megawatt-hour in 2024, up from $36 in 2021, according to a study Thursday from Energy Innovation Policy & Technology LLC, a San Francisco-based energy and climate think tank. The shift is driven by rising fuel and maintenance costs, and has been compounded as utilities retire more plants.

Cost of Coal is Climbing | Higher fuel costs are driving up the price of electricity from coal

© Energy Innovation

The Winner is Clear

Trump is driving to preserve coal power, even ordering last month that a plant remain open, days before it was scheduled to shut down permanently.

However, given elevated prices, about 99% of the US coal fleet costs more to operate than replacing the aging power plants with new wind or solar farms, according to Michelle Solomon, a manager with Energy Innovation’s electricity program.

Relying on coal plants will boost monthly bills for consumers, she said. 

“They’re really old, and they cost a lot to repair and run,” Solomon said in an interview. “Most likely those costs will come back to ratepayers.”