Global coal capacity reached a record high last year, primarily due to China’s construction of new capacity. However, a slowdown in the retirement of coal-fired power plants around the world also contributed to this increase. Data from the Global Energy Monitor, an energy trends tracker, found that coal-fired retirements have been declining since 2020, when total retirements globally exceeded 40 GV, to just over 20 GV in 2023.
China led the way by adding 47 GW of new coal-fired generation capacity last year, representing 66% of the global total of new additions. India and Indonesia also contributed significantly to the addition of new coal capacity. Despite the current growth, Global Energy Monitor’s coal program director, Flora Champenois, stressed the need for countries to accelerate the retirement of existing coal plants and halt plans for new ones to meet the targets set by the Paris Agreement.
However, switching from coal is not as simple as it sounds. Coal continues to provide reliable baseload power that renewables like wind and solar cannot guarantee. Additionally, the cost of coal alternatives remains a factor to consider. India, for example, plans to triple its coal production to meet its growing energy needs, noting that coal plays a key role in the country’s economic growth and development.
In conclusion, while efforts are being made to transition to cleaner energy sources, reliance on coal for energy production still exists in many parts of the world. Balancing the economic benefits of coal with the environmental goals outlined in international agreements remains a complex challenge for policymakers and energy actors globally.
