New coal impact research shows strong position for Appalachian Georgia region to apply for POWER funding

Recent Cambridge Econometrics analysis for the Georgia Department of Community Affairs reveals a strong position for the Appalachian region and communities to apply for POWER funding.

The study researched and identified potential and realized economic impacts in Appalachian Georgia, due to the decline in the coal industry.

An eligible POWER project ‘must be located within and targeted to communities or regions that have been recently impacted (or can reasonably demonstrate that they will be impacted in the near future) by coalmining or coal-power-plant employment loss, or employment loss in the supply-chain or logistics industries of either sector’.

The recent and upcoming retirement of power plants in Georgia since 2019 will have measurable impacts on job layoffs, local tax revenue, reduced freight rail shipments and multiplier effects on the regional economy.

In Appalachian Georgia, 23 of the 37 counties are categorized as depressed, vulnerable or hardship based on coal mining supply chain impacts.

While the electricity generation from coal power plants has decreased nationwide, this trend is particularly pronounced in Georgia where the share fell from 63% in 2008 to just 12% by 2020. And in Appalachian Georgia, the MWh of coal power plant electricity generation dropped even more steeply – a 91 percent decrease from 2005 to 2020.

Highlighted by the staggering decrease in coal power plant activity and retirements, the report findings provide the evidence to support county or multi-county applications for POWER grant funding to help diversify and enhance the Appalachian Georgia economy.

Dan Hodge, Executive Vice President of Cambridge Econometrics says,

While Appalachian Georgia does not have a coal mining industry, the evidence and analysis in this report demonstrates that the region and its communities have already faced significant economic impacts due to decreased coal power plant activity, job layoffs, reduced freight rail service, and broader economic and fiscal effects.

The announced plant retirements will extend this effect with specific report data findings that Georgia can use as it pursues POWER grant funding opportunities.

Click here for the full report and get in touch with Dan Hodge for more information.

Dan Hodge Executive Vice President [email protected]