U.S. Department of Energy selects coal plant modernization and restart projects

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DOE coal plant modernization

Highlights

U.S. Department of Energy selected projects under its 'Restoring Reliability' initiative to add and modernize coal power totaling over 3,500 MW capacity.
Two new coal-fired plants in Anchorage, Alaska, and Mt. Storm, West Virginia, will deliver 2,850 MW, while Guayama, Puerto Rico, and Cumberland, Maryland, get major retrofits and recommissioning.
Total $525 million funding, including $175 million for six earlier projects, emphasizes grid reliability support and federal commitment to dispatchable coal generation.

Funding plan targets coal capacity

As reported by the U.S. Department of Energy, the projects are being chosen under the agency’s “Restoring Reliability: Coal Recommissioning and Modernization” initiative, which is designed to expand and reinvigorate the U.S. coal fleet through efficiency upgrades, plant life extensions and added dependable generation capacity.

Two of the selected projects in Anchorage, Alaska, and Mt. Storm, West Virginia, are planning new coal-fired power plants with combined capacity of 2,850 MW. A third project in Guayama, Puerto Rico, will retrofit and modernize an existing 510-MW coal-fired plant, while a fourth in Cumberland, Maryland, plans to recommission a 205-MW coal facility that ceased operations in 2024.

The department says the combined output is enough to serve roughly three million U.S. households each year. The latest selections are part of a broader $525 million funding opportunity that also includes $175 million for six previously announced projects to upgrade existing coal facilities.

Grid reliability and regional energy impact

The department frames the investment as part of a wider effort to strengthen strategic energy infrastructure and preserve dispatchable generation capacity in multiple regions. The selected projects span mainland U.S. markets as well as Puerto Rico and Alaska, indicating a focus on reliability in systems with differing grid constraints and supply risks.

Energy Secretary Chris Wright says the administration is seeking to stop premature coal plant closures and modernize existing infrastructure, while Undersecretary of Energy Kyle Haustveit says the funding is intended to support affordable and reliable power supplies. For the power sector, the move signals continued federal backing for coal-fired generation as a component of long-term U.S. energy security.

In our earlier article on the GAO ruling over DOE’s FY2025 energy spending, we reported that the agency improperly redirected congressionally approved funds away from wind and solar R&D, potentially triggering an Antideficiency Act violation. The piece detailed steep proposed cuts to wind and solar allocations, alongside higher-than-authorized geothermal obligations, and outlined the downstream effects cited by lawmakers, including canceled awards, higher costs, and job losses at national laboratories.

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