Energy Review: Part 3 - Coal

Last year, Britain kissed goodbye to its last coal power plant. The closure of the plant in the Midlands made the UK the first G7 country to end coal power. 

A similar story can be found across the channel. In mainland Europe, coal production and consumption have been falling since 1990.

However, major powers such as China and India are still adding coal-fired plants to their energy mix despite their commitments to cutting global emissions long term.

At the beginning of 2024, India was rapidly expanding its coal-based generation capacity in order to avoid power outages from record increases in demand.

Although the continued expansion of coal in India could be problematic, it is easy to see why the decision has been made. India possesses the fifth-largest coal reserve globally, and already has significant coal infrastructure with it making up almost 50% of their energy mix coal has a lower initial capital cost compared to other alternatives, making it more accessible for rapid expansion. 

The investment seems more reactionary to the bottlenecks India has been experiencing in recent years than reflective of any active hostility towards the energy transition. 

A more surprising movement comes from China, often seen as a pioneer of renewable investment, who constructed power plants at the highest rate in a decade.

China began construction on nearly 100 gigawatts worth of coal capacity last year.

Although China added significantly more wind and solar generating capacity than coal, research institution  Global Energy Monitor said in a report that “Instead of replacing coal, clean energy is being layered on top of an entrenched reliance on fossil fuels” adding that “The parallel expansion of coal and renewables risks undermining China’s clean energy transition”.

However, there is potential for China to be turning another corner this year, as analysts expect Chinese renewables to be able to meet all new electricity demand in 2025. Recent investment within grid infrastructure has made renewable energy much more efficient, alleviating demand for coal-fired energy production.

Despite the occasional demand-driven and budget-fueled uptick in coal-fired energy, the world finds itself gently progressing towards the retirement of coal power. 

Considering the content of the past two articles, this may not be enough to reach previously set transition goals. Continued growth in fossil fuels through oil and gas will have to be combated by governments, such as the EU, that remain committed to fighting climate change.