Trump orders Pentagon to buy electricity from coal-fired plants
The order creates a procurement constraint by embedding priority for coal-based energy assets into Department of Defense electricity sourcing, requiring long-term purchase commitments and preservation of coal assets within defense contracting.
Change
President Donald Trump signed an executive order directing the US Department of Defense to enter into long-term purchase agreements for electricity from coal-fired power plants.
Why it matters
An executive order signed by President Trump directs the US Department of Defense to enter into long-term purchase agreements with coal-fired power plants. The order instructs the department to prioritise the preservation and strategic utilisation of coal-based energy assets. The measure is presented as an effort to boost demand for coal amid its declining cost competitiveness and climate change concerns. The signing occurred at a White House event attended by coal industry executives and miners.
Implications
- — Department of Defense procurement processes must establish long-term contracts for electricity with coal-fired generators.
- — Defense energy sourcing decisions are constrained to prioritise preservation and strategic utilisation of coal-based assets.
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