Friday 29 July 2022

Back to black: coal demand to return to its peak this year

As countries are juggling between skyrocketing energy prices and reduced gas flows, it seems that many of them could turn to coal to secure power to keep the lights on in winter.

The latest report by the International Energy Agency (IEA) paints a grim picture of the current situation the international energy systems find themselves in.

The IEA's Coal Market Update report forecasts that global coal demand will return to its record highs this year.

The agency estimates that global coal consumption will rise by 0.8% in 2022 to eight billion tonnes.

In its winter outlook report, the National Grid ESO said it was working with the government to negotiate the delay of the closure of five coal power stations in the UK.

The plants will provide additional backup electricity to ensure the grid has enough supply to meet energy demand.

The IEA said the predicted global coal demand would match the annual record set in 2013.

It also predicted that coal demand will increase further next year to a new all-time high.