BAKU, Azerbaijan, December 6. Global coal-fired power generation is poised to reach its peak in 2023 as renewable and low-carbon energy sources experience rapid expansion, Rystad Energy, an independent energy research and business intelligence company from Norway, said, Trend reports.
Despite coal's dominance in the global power sector for the past three decades, Rystad Energy's modeling indicates that 2024 will mark the beginning of its decline, with solar and wind generation gaining popularity.
The anticipated increase in renewable electricity supply is expected to surpass the growth in power demand, leading to the displacement of coal starting next year and intensifying in the subsequent years. Consequently, coal-fired generation is projected to decrease marginally to 10,332 terawatt hours (TWh) in 2024, a reduction of 41 TWh from 2023. While this may seem like a modest decline, it signals a shift in the energy landscape as renewables continue their upward trajectory.
As coal's share diminishes, so will the associated CO2 emissions. Given coal's significant role in global power generation, the power sector currently contributes about 40 percent of all emissions.
Recent years have seen decreased investments in coal capacity and usage in Europe and North America due to stringent emissions policies and the abundant availability of affordable natural gas supplies. Despite sustained growth in Asia, particularly in China, which has kept global coal consumption afloat, coal will gradually give way to the rapid advancement of low-carbon power sources. This transition will usher in a cleaner and more efficient system, even as investments in new capacity persist in Asia over the next few years.
