Global coal generation seen to rapidly decline over the decade
Asia is the only region that will post growth in coal generation.
Coal generation globally is expected to enter a “net decline” over the coming decade ending in 2031 as markets shift their goals to decarbonisation and energy security, but Asia is the sole region that will see growth in the sector.
In a report, Fitch Solutions said coal generation will be falling at an accelerated rate to 9,750 terawatt-hours (TWh) by 2031 from 9,814TWh over 2022.
“The coal sector’s growth will be limited to Asia with all other regions seeing net declines, as North America and Western Europe (NAWE) lead phases outs followed by Latin America,” the report read.
“This decline is being driven by rising efforts to decarbonise the power sector amid the energy transition,” it added.
Fitch noted that the rising carbon price in Europe sped up the phasing out of coal in favour of low carbon alternatives, adding that there are global agreements on ending financing on overseas coal that are pushing through.
It cited the agreements made at the recent United Nations Climate Change Conference (COP26), and moves by organisations such as the European Union and G7 to restrict capital access for coal.
China, Japan, South Korea and the US have also agreed to end the overseas financing of the coal sector.