CREA found that global generation from coal-fired power plants was broadly flat in March, with generation outside China down 3.5%, while it rose 2%.
Coal transportation declined to COVID-19 peak levels
Meanwhile, seaborne coal shipping volumes fell globally by 3%, dropping to their lowest level since 2021, the peak of the COVID-19 pandemic.
Total coal-fired power generation fell by 1% year-on-year in March, with gas-fired generation falling by 4%.
The analysis cited by Euronews covers China, the US, the EU, India and several other countries, which account for about 87% of global coal-fired generation and more than 60% of gas-fired generation.
Renewable sources help alleviate the crisis
The blockade of a key offshore oil and gas supply route disrupted fuel supplies and drove up prices. Renewables have played an important role in softening the blow: solar power alone saved Europe €3 billion in March.
Solar power generation rose 14% last month, while wind power added about 8%.
Why hasn’t there been a “coal revival”?
At first, these expectations were partly met, but the crisis has led to a sharp acceleration of the clean energy transition in Europe.
After the closure of the Strait of Hormuz, the US, India, the EU, Turkey and South Africa recorded the most notable drops in coal-fired generation in March, according to CREA. This is largely due to the fact that coal-fired generation was cheaper than gas-fired generation even before the crisis, so the remaining coal-fired plants were already operating at high load.
While some countries have responded to the crisis by announcing plans to restart, postpone closures or increase the use of coal-fired plants, the abandonment means that it will be difficult to ramp up generation quickly. In fact, in no country in March was a single plant brought back on line or a single closure postponed, CREA emphasizes.
The economic case for investing in coal continues to weaken: as the energy crisis raises fuel transportation costs, coal is becoming more expensive than renewable energy generation and storage, CREA points out.
