Skip to main content

Coal production will rise to its highest-ever levels in 2022, says IEA

Coal production is forecast to reach an all-time high in 2022, and then after a couple of years, plateau as demand flattens, according to the latest annual market report from the International Energy Agency (IEA), released today.

After falling in 2019 and 2020, global power generation from coal is expected to jump by 9% in 2021 to an all-time high of 10,350 terawatt-hours, according to the IEA’s Coal 2021 report.

This surge is a result of 2021’s economic recovery from the pandemic, which has boosted demand for electricity faster than renewables can keep up. Further, natural gas prices are now high, so that’s made coal more cost-competitive.


UnderstandSolar is a free service that links you to top-rated solar installers in your region for personalized solar estimates. Tesla now offers price matching, so it’s important to shop for the best quotes. Click here to learn more and get your quotes. — *ad.


More than half of global coal-fired electricity generation occurs in China, where coal power is expected to grow by 9% in 2021. In India, it’s forecast to grow by 12%. That would set new all-time highs in both countries.

But it’s important to note that both China and India are rolling out significant amounts of solar and wind capacity at the same time.


Read more: 2021 will be an all-time, record-breaking year for clean energy installations


In the US and the EU, coal power generation is set to increase by almost 20% in 2021. However, that’s not enough to take it above 2019 levels. Coal use in the US and the EU is expected to resume declining in 2022 due to slow electricity demand growth and rapid growth of clean energy.

The IEA report’s executive summary states:

The coal power generation rebound in the United States and Europe in 2021 is a blip, and coal demand will resume its decline in both regions. However, Asia dominates the global coal market, with China accounting for more than half of global demand, or two-thirds if India is added. These two economies – dependent on coal and with a combined population of almost 3 billion people – hold the key to future coal demand. The fate of coal depends on how quickly and effectively countries move to implement their net zero commitments. 

Keisuke Sadamori, director of energy markets and security at the IEA, said:

The pledges to reach net zero emissions made by many countries, including China and India, should have very strong implications for coal – but these are not yet visible in our near-term forecast, reflecting the major gap between ambitions and action.

FTC: We use income earning auto affiliate links. More.

Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

Comments

Author

Avatar for Michelle Lewis Michelle Lewis

Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at michelle@9to5mac.com. Check out her personal blog.