The Tennessee Valley Authority intends to replace the first of two units at one of the largest operating coal plants in the U.S. with a new 1,450-MW combined-cycle gas plant, the federal power authority announced Jan. 10.
The TVA plans to complete the new plant by 2026 and retire the two-unit, 2,522-MW Cumberland in two stages: one unit by the end of 2026 and the second by the end of 2028, according to the announcement.
Replacement generation for the second Cumberland unit has been deferred to allow consideration of a "broader range of replacement options," the TVA said in the announcement.
"Replacing retired generation with a natural gas plant is the best overall solution because it's the only mature technology available today that can provide firm, dispatchable power by 2026 when the first Cumberland unit retires — dispatchable meaning TVA can turn it off and on as the system requires the power," TVA President and CEO Jeff Lyash said in the announcement.
The replacement should result in a 60% reduction in carbon emissions compared to the existing Cumberland plant, according to the TVA.
The announcement came after more than 100 advocacy organizations signed a Jan. 4 letter urging the U.S. Environmental Protection Agency and the Biden administration to halt any TVA plans to replace retiring coal-fired plants with more gas generation.
The TVA's announcement matches its draft environmental impact statement from April 2022 that included a plan to demolish the two Cumberland units and add at least 1,450 MW of replacement generation. The TVA was weighing three alternatives for replacing the generation lost by retiring one Cumberland unit: a combined-cycle combustion turbine gas plant at the Cumberland site in Stewart County, Tenn.; two simple-cycle combustion turbine gas plants at alternative locations; or multiple solar generation and energy storage facilities at alternative locations primarily in middle Tennessee.
In June 2022, the EPA urged the TVA to reconsider a plan to replace Cumberland with gas generation because of the "urgency of the climate crisis."
In November 2021, the TVA board of directors gave Lyash authority to make the final decision on the fates of the Cumberland and 1,420-MW Kingston plants.
Cumberland is the largest generating asset in the TVA coal fleet. The TVA is continuing to evaluate the rest of the fleet for retirement, according to the announcement, including the Kingston plant in Roane County, Tenn., which is undergoing an environmental review to determine potential impacts of its retirement and replacement. A draft environmental impact statement is expected this spring or summer.
S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.
