Iowa Utilities Increased Coal Use in 2025
State power companies raised coal generation levels last year to meet a surge in industrial electricity demand.
Updated on Sept. 20, 2026 in Utilities
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Major Iowa utility providers increased coal-fired electricity generation throughout 2025 to support rising energy needs from data centers and manufacturing expansions. This shift in energy production led to a corresponding increase in emissions of sulfur dioxide and nitrogen oxide of over 50 percent.
Why it matters
Utilities relied more heavily on coal to maintain reliable service as renewable energy projects faced development delays and periods of low wind and solar output. This trend highlights the ongoing tension between maintaining grid reliability and meeting long-term decarbonization goals.
MidAmerican Energy saw its coal resource mix climb from 21% in 2024 to 27% in 2025, while Interstate Power and Light increased its coal usage from 12% to 20% over the same period.
The players
MidAmerican Energy
This is a major utility company providing electric service to approximately 1.3 million customers in Iowa.
Interstate Power and Light
This subsidiary of Alliant Energy manages power distribution and generation operations across the state.
The details
Nine utility-scale coal plants across the state operated at higher capacities to address power demand from new manufacturing facilities and data centers. Government air quality monitors recorded higher concentrations of particulate matter as these older plants increased combustion activity.
Timeline
2024 served as the baseline for coal generation and demand figures.
2025 marked the period of increased coal usage across major utilities.
2026 data indicates the trend of higher coal reliance continued.
2050 is the target year for utilities to reach net-zero emissions.
Market Landscape
The rise in coal generation represents a short-term departure from the trajectory set by the 2050 net-zero greenhouse gas emissions targets. This shift underscores the challenge utilities face in balancing immediate reliability for heavy industries against long-term green energy pledges.
Increased reliance on older coal plants may impact regional air quality and particulate matter levels in areas near power generation facilities. Customers should expect utilities to continue balancing coal use with renewable projects as they work to meet electricity demand while pursuing long-term net-zero goals.
The takeaway
Reliability pressures from industrial growth can create temporary spikes in fossil fuel usage even among companies with long-term climate targets. Balancing these immediate grid demands with the transition to renewables remains a core challenge for regional utility providers.
Further reading
For additional context on the state energy grid, visit the Utilities section.
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Do you support the use of coal to ensure reliable electricity service in your area?
