The Key to Decommissioning Is to Plan

A little more than a decade ago, coal-fired power plants produced more than half of the electricity in the U.S. According to the U.S. Energy Information Administration, in 2017 that number fell to about 30 percent. That decrease is attributed to many older and smaller plants ceasing operations because of inefficiencies.

“Economics now seem to be driving decisions about whether to retire coal-fired power plants,” says Jeff Pope, manager of facility decommissioning and demolition services at Burns & McDonnell. “However, long-term safety and environmental factors are driving how to go about it — retiring in place or tearing it down.”

When plant owners conclude that selling power and capacity is not covering the cost of operating a plant, retirement is the logical next step. There are critical steps to take before a plant gets decommissioned. Working out the details ahead of time can save time and offer financial benefits.

The Critical Step Is Planning Ahead

“Many utilities spend up to a year planning their activities before retiring a unit,” says Jason Eichenberger, an associate civil engineer at Burns & McDonnell. “The rest of the process can take up to two years, depending on size and scope of the project.”

A plan to decommission should include a comprehensive picture of the process and teams to focus on the details of their role.

For some, the choice to retire a unit where it stands includes a timeline for securing the site and a budget for future demolition.

“The decision to postpone demolition generally makes economic sense for utilities with multiunit sites being retired at different times,” Pope says. One unit can be decommissioned while others stay online, and then will be demolished once all units are retired.

The cost of retiring in place includes environmental compliance — closure of the coal combustion residual (CCR) impoundments — securing the site and safety management of the structures. Delaying demolition comes with some rising costs, including labor.

Besides saving on operation and maintenance costs, the economic benefits to moving forward with demolition could include the sale of assets like land or scrap credit for steel, copper and other materials that can be salvaged and resold.