Summary:

• Global coal equities have seen solid performance over the last year amid ongoing demand growth, improving prices, and US federal support for the coal industry.
• Coal plant retirements in the US have been delayed in order to ensure grid stability and affordable power prices.
• The Trump Administration has been supportive of the US coal industry.

Despite climate initiatives and various opposition campaigns, global coal demand has continued to reach new highs in recent years. Coal stands to benefit from rising global electricity demand as countries prioritize reliable and affordable power. In the US, coal has enjoyed strong support from the federal government. Learn more about the tailwinds for coal broadly and in the US.

Coal remains resilient.

Coal demand has proven resilient through various climate initiatives, divestment campaigns, and targeted phase-outs. Global coal demand was expected to have reached a new record high last year. [1] In February 2026, coal prices were trading near one-year highs. [2]

Thermal coal is primarily used for power generation, while metallurgical coal is used in steelmaking. Around two-thirds of global coal demand is driven by power generation. The fate of coal is closely tied to China, which consumes more coal than all other countries combined. [1]

While many may have expected coal demand to peak by now, it could continue to grow as electricity demand rises worldwide. For context, the International Energy Agency is forecasting annual global electricity demand growth of 3.6% for 2026-2030.3 This is 50% greater than the average growth seen for the prior decade. It may be difficult to transition away from coal with power demand on the rise.

US delaying coal plant retirements.

This year, 6.4 gigawatts (GW) of coal plant capacity in the US is slated to retire, accounting for ~4% of the nation’s coal fleet. [4] However, policy actions may delay plant retirements as seen in 2025. Last year, 8 GW of coal capacity was expected to be retired but only 2.6 GW was shut down. [4] Emergency orders from the Department of Energy (DOE) extended the lives of multiple coal plants to help ensure grid reliability and affordable power prices. Specifically, six plants in the Midwest and Colorado saw their retirements delayed from 2025 to 2026. [4]

With growing power demand and the rise of data centers, power bills have faced greater political scrutiny in parts of the US. Keeping power reliable and affordable is especially important as electricity demand rises. Utilities are pushing out select coal plant retirements in response.

For example, Talen Energy (TLN) reached a reliability agreement with grid operator PJM Interconnection and multiple other parties in January 2025 to extend the operations of two of its coal plants. [5] Originally slated to retire in May 2025, the Brandon Shores and H.A. Wagner power plants will now operate until May 2029. In February 2026, the Tennessee Valley Authority decided to keep two coal plants in Tennessee running indefinitely, abandoning plans to close the facilities in 2026 and 2028. [6]

Federal support for coal in the US.

In September 2025, the Department of Energy (DOE) announced up to $625 million to support the US coal industry. [7] This followed two executive orders from April, with one focused on reinvigorating the US coal industry [8] and another on strengthening the grid. [9] As part of that initiative, in February, the DOE announced $175 million in funding to upgrade six coal facilities serving rural communities. [10] Also in February, the Trump Administration released an Executive Order instructing the Department of Defense to prioritize long-term power purchase agreements for coal power. [11]

Conclusion

Reliable, affordable power remains important for energy security and national security. For many countries, including the US, coal power generation remains an important part of the energy mix. Amid rising power demand globally, coal demand may continue to grow.

For investors looking to gain exposure to this theme, the Range Global Coal Index ETF (COAL) includes companies that are involved in the metallurgical and thermal coal industry.

Sources:

[1]  International Energy Agency, Coal 2025, December 17, 2025

[2] Trading Economics, https://tradingeconomics.com/commodity/coal

[3] International Energy Agency, Electricity 2026, February 6, 2026

[4] Energy Information Administration, Today in Energy, February 23, 2026

[5] Talen Energy, “Talen Energy, Other Parties Reach Reliability Must Run Settlement Agreement for Brandon Shores and H.A. Wagner Power Plants, Press Release, January 27, 2025

[6] Wallace, Alton, TVA to keep two coal-fired power plants operating indefinitely, The Mountaineer, February 12, 2026

[7] US Department of Energy (DOE) announcements, Energy Department Announces $625 million Investment to Reinvigorate and Expand America’s Coal Industry, September 29, 2025

[8] U.S. Executive Office of the President, Reinvigorating America’s Beautiful Clean Coal Industry and Amending Executive Order 14241, Federal Register 90, no. 15517 (Apr. 14, 2025)

[9] U.S. Executive Office of the President, Executive Order 14262: Strengthening the Reliability and Security of the United States Electric Grid, Federal Register 90, no. 15521 (Apr. 14, 2025)

[10] U.S. Department of Energy, Energy Department Announces $175 Million to Modernize Coal Plants, Keeping Affordable Reliable Power Online for Americans, February 11, 2026

[11] The White House, Fact Sheet: President Donald J. Trump Strengthens United States National Defense with America’s Beautiful Clean Coal Power Generation Fleet, February 11, 2026, The White House

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