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Global coal demand to remain flat this year and next-IEA

Worldwide coal need is set to stay mainly flat this year and next as higher electrical power need in some significant economies offsets the rapid expansion of solar and wind, the International Energy Agency stated in an upgrade on the coal market.

Global usage of coal increased by 2.6% in 2023 to an all-time high, driven by strong growth in the two largest coal customers, China and India.

While coal demand grew in the electrical power and industrial sectors, the main motorist was making use of coal to fill the gap created by low hydropower output and quickly rising electrical power need, the report showed.

Our analysis shows that worldwide coal need is likely to stay broadly flat through 2025, based on today's policy settings and market patterns, stated Keisuke Sadamori, IEA's. director of energy markets and security.

The continued quick implementation of solar and wind, combined. with the recovery of hydropower in China, is putting considerable. pressure on coal usage. However the electricity sector is the main. motorist of international coal need, and electrical energy intake is. growing extremely highly in several significant economies, he added.

Without such strong development in usage, there would be a. decrease in global coal usage this year, he stated.

Although the continued implementation of solar and wind power is. slowing the growth in coal usage in China, it's electrical energy need. is forecast to rise by 6.5% this year, making a decline in coal. intake unlikely.

In India, coal need development is set to slow in the 2nd. half of 2024 as climate condition go back to seasonal averages. and hydropower output improves.

After falling by more than 25% in 2023, coal power. generation in the European Union is forecast to come by almost. as much again this year. Coal usage has actually also been contracting. significantly in the United States recently, however stronger. electrical energy need and less changing from coal to natural gas. threaten to slow this trend in 2024, the report said.

(source: Reuters)