Global Coal-Fired Power Capacity Sees Highest Annual Growth Since 2016
A recent report reveals that global coal-fired power capacity experienced a 2% increase last year, marking its most significant annual growth since 2016.
This surge was primarily driven by new construction projects in China and delays in decommissioning efforts elsewhere.
Despite notable advancements in renewable energy sources, approximately 70 gigawatts (GW) of new coal power capacity were commissioned worldwide in the past year, with China contributing 47.4 GW. Additionally, coal-fired capacity expanded outside of China for the first time since 2019, while only 21.1 GW of capacity was retired globally.
Global coal power grew 2% last year, the most since 2016, GEM survey says https://t.co/ZDxTZIFpPN pic.twitter.com/cJW4PoQ9js
— Reuters (@Reuters) April 11, 2024
Source: Twitter/Reuters
Global Efforts to Reduce Coal-Fired Power Capacity Face Challenges
Flora Champenois, the lead author of the report, highlights that since the signing of the Paris Agreement in 2015, 25 countries have decreased their coal-fired power capacity, while 35 have seen an increase.
However, Champenois stresses that much more action is needed to effectively address the issue.
Urgent Action Needed to Limit Global Temperature Increases
To limit global temperature rises to 1.5 degrees Celsius (2.7 degrees Fahrenheit), projections by the International Energy Agency indicate that global coal power capacity must be phased out by 2040.
This necessitates an average closure of 126 GW of capacity annually, equivalent to shutting down two plants every week, even without adding new capacity.
Growing Concerns Over China’s Coal-Fired Power Expansion
Despite China's efforts to reduce coal dependence in line with long-term climate goals, the country's coal plant retirement rate hit a decade low last year due to concerns over energy security.
This poses significant financial risks, as China risks being saddled with stranded assets.
Risks of Short-Term Approaches to Energy Supply
Recent approvals for coal projects in China come with the slogan "build first and modify later," indicating a short-term approach to addressing energy needs.
However, Flora Champenois warns against overbuilding coal infrastructure, emphasizing the costly and risky nature of this strategy, particularly when viable alternative solutions exist to meet energy security needs.
This comprehensive analysis underscores the urgent need for global action to accelerate the transition away from coal-fired power towards sustainable and renewable energy sources.
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