en.Wedoany.com Report on Mar 25th, the planned 1.25 GW Terra Energy Center in southeastern Alaska, USA, announced an agreement with South Korea's Hyundai Heavy Industries Power System Co., securing an order for utility-scale coal-fired boilers worth approximately $1 billion. This marks the first major coal-fired boiler order for a US coal power plant since 2006.
The Terra Energy Center also received an additional $500 million investment support from South Korean private equity firm KOREIT. It is set to become the first newly constructed coal-fired boiler power plant in the United States since the Sandy Creek Energy Station in Texas began operations in 2013. The project may be accompanied by new data center construction, reflecting the trend of surging electricity demand and growing concerns about grid reliability in the US.
The data center construction boom is significantly driving up electricity demand. An assessment by the North American Electric Reliability Corporation (NERC) indicates that over half of US regions face potential electricity shortages in the next decade. NERC forecasts that by 2035, US summer peak demand will increase by over 225 GW, and winter demand by 245 GW, equivalent to the electricity consumption of approximately 150 million households.
With electricity prices rising nearly 40% since 2020, renewed interest in coal—including new plant construction and extending the lifespan of existing plants—has become a key market response to demand. As a reliable, dispatchable power source, coal can supply electricity on-demand during grid peak periods and relies on on-site fuel reserves to support operations.
The average capacity factor for coal-fired units has risen from 42% in 2024 to 50% in 2025, responding to higher electricity demand and competing for market share against natural gas. Utilities like Xcel Energy in Colorado have announced the need to extend the lifespans of coal-fired power plants to address supply shortages. The Terra Energy Center project may signal the continued role of US coal-fired power generation within the energy transition.
