A total of 8.6 GW of power generation capacity in the U.S. was retired in 2021, the second consecutive annual decline since 21.7 GW was permanently shuttered in 2019, according to S&P Global Market Intelligence data.
The fall represents a 43% drop from the 15.1 GW of plant capacity permanently shuttered in in 2020 and a 61% reduction versus retirements in 2019, when coal-fired plant retirements boomed due to a combination of low gas prices, aging fleets and increased emissions regulations. The U.S. power fleet totals approximately 1,180 GW.
Coal-fired resources made up three-fifths of the retirements in 2021, equivalent to 5.2 GW. Nuclear capacity accounted for the next-largest retirement at 12.2% of the total, which is wholly attributable to the shutdown of the 1,040-MW Indian Point 3 plant in Westchester County, N.Y., in April 2021. Other retirements include 761 MW of gas-powered resources and 488 MW of wind capacity, or 8.9% and 5.7% of the total, respectively.
The Midcontinent ISO outpaced other regions in terms of retirements, accounting for more than a third of the overall shuttered capacity in the country. MISO's retirements totaled 3,236 MW, largely made up of coal-fired power plants. That includes two units at NiSource Inc. subsidiary Northern Indiana Public Service Co.'s R.M. Schahfer plant in Jasper County, Ind., with a combined capacity of 903 MW retired in October and the 645-MW Dolet Hills in De Soto County, La., shut down in December. Dolet Hills is operated and majority-owned by Cleco Power LLC, with American Electric Power Co. Inc. subsidiary Southwestern Electric Power Co. also holding a sizable share.
In the PJM Interconnection, 1,424 MW of capacity was taken offline permanently. The bulk of the region's retirements consisted of three coal-fired plants: GenOn Holdings Inc.'s 683-MW Chalk Point 1 and 2 in Prince George's County, Md.; two units at Ares Owners Holdings LP's Spruance Genco in Richmond County, Va., with a combined capacity of 105 MW; and the 244-MW Birchwood Power Facility in King George County, Va., jointly owned by Japan-headquartered Electric Power Development Co. Ltd. and General Electric Co. The Birchwood site is to be used for a solar and energy storage facility.
The New York ISO had the third-largest retired capacity at 1,124 MW, of which 92.6% was accounted for by the Indian Point 3 nuclear plant retirement. Indian Point 3 was the single largest facility shuttered during the year. Entergy Corp. cited low energy prices for the decision to retire the facility, and in 2020 it retired another unit, Indian Point 2, at the site.
Wind capacity retirements include Pattern Energy Group Inc.'s 283-MW Texas Gulf Wind in Kenedy County, Texas, and Energy Trading Innovations LLC's 150-MW Sherbino Mesa 1 in Pecos County, Texas. The Texas Gulf Wind plant was repowered into a 271-MW facility. The two retirements comprise the 433 MW of total shuttered capacity in the Electric Reliability Council of Texas Inc. in 2021.