Page 4 - AfrElec Week 01 2023

AfrElec COMMENTARY AfrElec

Record 2022 for coal

threatens green targets

ASIA World coal consumption reached a new high in demand is stubborn and will likely reach an
2022, and will level out in 2023 and 2024, with all-time high this year, pushing up global emis-
rising usage in emerging Asian countries cancel- sions. At the same time, there are many signs that
ling out falling demand in advanced economies. today’s crisis is accelerating the deployment of
The International Energy Agency (IEA) said renewables, energy efficiency and heat pumps –
in Coal 2022, its annual report on the sector, that and this will moderate coal demand in the com-
consumption rose by 1.2% in 2022 to surpass ing years. Government policies will be key to
8bn tonnes. ensuring a secure and sustainable path forward.”
Higher natural gas prices amid the global
energy crisis led to increased reliance on coal for Findings
generating power, but slowing economic growth The international coal market remained tight in
at the same time reduced electricity demand and 2022, with coal demand for power generation
industrial output – and power generation from hitting a new record. Coal prices rose to unprec-
renewables has risen to a new record. edented levels in March and then again in June,
The major warning of the report was the pushed higher by the strains caused by the global
global coal consumption was unlikely to fall by energy crisis, especially the spikes in natural gas
2025 because of in an absence of stronger efforts prices, as well as adverse weather conditions in
to accelerate the transition to clean energy. Australia, a key international supplier.
Europe saw a small rise in consumption, Europe, which has been heavily impacted by
although this is expected to be temporary, the Russia’s sharp reductions of natural gas flows,
IEA said. In China, the world’s largest coal con- increased its coal consumption for the second
sumer, a heat wave and drought pushed up coal year in a row. However, by 2025, European coal
power generation during the summer, even demand is expected to decline below 2020 levels.
as strict Covid-19 restrictions slowed down
demand. The world’s three largest coal producers –
“The world is close to a peak in fossil fuel use, China, India and Indonesia –all hit production
with coal set to be the first to decline, but we are records in 2022.
not there yet,” said Keisuke Sadamori, the IEA’s However, the report noted that despite
Director of Energy Markets and Security. “Coal high prices and comfortable margins for coal

P4 www. NEWSBASE .com Week 01 04•January•2023