North America
The Energy Picture

prepared by

North American Energy Working Group

June 2002

(5) North America — Infrastructure: Coal and Electricity

Coal Infrastructure in North America

Coal is a relatively plentiful fuel in the world and, consequently, must have infrastructure that provides competitive costs for handling and delivery. Coal’s supply requires structures for mining, preparation, delivery, and storage. Most coal travels by rail, barge, and ship. Coal is used primarily for electricity generation and for metallurgy (steel production).

Canada’s coal production is used mostly for electricity generation and some exports of metallurgical coal. Canada is the principal export market for United States coal. Most of Canada’s coal is produced and consumed in Alberta and Saskatchewan. Some thermal coal is transported by rail to Ontario.

Mexico produces small quantities of coal but does not rely much on coal as a fuel. Small quantities of coal come from Canada and the United States. About a tenth of Mexico’s electricity generation is from coal-fired plants.

The United States is a major international coal producer and consumer. Consequently, the United States has major infrastructure requirements in every phase of coal production and use.

Coal — United States

U.S. Coal Reserves
U.S. Coal Reserves
  • The three largest coal-producing States are Wyoming, West Virginia, and Kentucky.
    Texas and Pennsylvania are also major producers.
  • Eleven other states also are significant coal producers:
    Alabama, Arizona, Colorado, Illinois, Indiana, Montana, North Dakota, New Mexico, Ohio, Utah, and Virginia.
  • Coal is transported mainly by rail.

Electricity Infrastructure in North America

The vital role of electricity for every business and household makes its infrastructure a primary concern for North America. As economies grow, the need for electricity grows. There is a continual need for new investment for plant development, transmission, and distribution. In addition, the industry is introducing new types of generating equipment — most notably combined-cycle combustion units. This new equipment can use oil or gas but primarily uses natural gas. The development of economical clean-coal technologies could offer enhancement of coal use in electricity generation.

Each country in North America is undergoing restructuring and regulatory changes that have important impacts on infrastructure development. Section 6 describes the legal and regulatory frameworks for Canada, Mexico, and the United States.

Canada trades significant quantities of electricity with the United States. Quebec is a major exporter to the northeast United States. Quebec and Newfoundland plan to make important expansions in electricity generating capacity.

Most electricity generation in Mexico comes from thermal power plants — many in the area of Mexico City. Mexico is a net importer of electricity from the United States. Mexico’s border areas receive electricity from the United States in emergency situations. The United States has electricity trade with Canada and Mexico at many points stretching from Maine to Washington and from Texas to California. In addition, northwestern hydropower capability partially depends on the water supply that originates in Canada.

Reliability of supply is a major concern for each country in North America and has important implications for future development of infrastructure. The North American Electricity Reliability Council (NERC) is working in Canada and the United States on electric system reliability standards and wholesale business practice standards. NERC is a voluntary organization that has 10 regional councils that account for almost all electricity supplied within Canada, the United States, and a portion of Baja California in Mexico. One of the key infrastructure issues for North America is interconnectivity of transmission. North America has major electric power grids but does not have an overall, comprehensive grid. Within the area of the NERC councils there are three major systems — the Eastern Power Grid, the Western Power Grid, and the grid within the Electric Reliability Council of Texas (ERCOT) — that have limited cross-grid interconnection capability. In addition, there are interconnection compatability issues outside the NERC councils, particularly between Mexico and the United States.

Electricity — Canada

Major International Interconnections (kV)
and Electricity Trade (Gwh) 1999
Major International Interconnections (kV) and Electricity Trade (Gwh) 1999
  • Canadian electricity markets are well-integrated with U.S. markets.
  • There are plans to expand hydropower generation in Quebec and Newfoundland.

Electricity — Mexico

Major Electric Power Stations (MW), 2000
Major Electric Power Stations (MW), 2000
  • Thermal power plants provide the largest share of Mexican electricity generation.
  • The highest concentration of power plants is located near the major metropolitan center of Mexico City.

 

Mexico-U.S. Border Power Interconnections
Mexico-U.S. Border Power Interconnections

Proceed to (5) North America — Future Infrastructure Developments

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