Despite a decline in its use for electricity, coal stockpiles are rising, particularly for steel production. Let’s delve into global trends for coal used in electricity generation. We’ll explore three key aspects: countries continuing to build coal plants, regions with the highest concentration of existing plants, and areas phasing them out.

There’s a stark contrast between Asia and the West when it comes to building new coal power plants. Over the past two decades, China has seen a fivefold increase, jumping from 200,000 to over 1 million megawatts of installed capacity, and they’re not slowing down with plans for 100 more stations in 2023 alone (according to Reuters). This trend extends to India and Southeast Asia, which are planning significant increases in coal capacity due to limited hydroelectric resources and minimal plans to retire existing plants. With these regions consuming a whopping 70% of global coal compared to just 10% by the US and Europe, it’s clear where the future of coal demand lies. In simpler terms, Asia is building while the West retires, meaning coal consumption in Asia is likely to stay strong.

The ideal energy source would be environmentally friendly, reliable, and cheap – the holy grail of the energy trilemma. Coal seems like a good option at first. It’s readily available (secure) and power plants are relatively inexpensive to build, making electricity affordable. However, there’s a catch: coal is highly polluting.

On the other hand, renewable energy like wind and solar power are clean and affordable. But, they have a major drawback: they’re not always available (intermittent). Without reliable energy storage solutions like large-scale batteries, relying solely on renewables could compromise energy security.

The US has been moving away from coal, but the replacement hasn’t been entirely eco-friendly. Natural gas, a domestic resource, has filled the gap, offering both security and affordability. This shift prioritizes practicality over environmental concerns. However, there’s a silver lining: even though natural gas is still a fossil fuel, it produces less CO2 than coal, so it’s a step in the right direction for the environment.

While coal use has declined in the US, it might not completely disappear. It’s possible that coal could stabilize at its current level, supplying roughly 20% of the nation’s electricity. Additionally, with the Republican party advocating for fossil fuels, we can expect a slowdown in plant closures and potentially even extensions of existing plants’ lifespans. Looking ahead, depending on future elections and environmental regulations, there’s even a chance of new coal plants being built in certain states, especially if the Supreme Court weakens environmental agencies’ power.

Contrary to the trend in the US and Europe, Asia shows no signs of retiring coal plants. This could be due to a continued focus on readily available fossil fuels, or a fear of missing a window of opportunity. China’s coal plant surge might be driven by concerns that such projects will soon become politically infeasible, prompting them to build now while they still can.

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