Despite promises from countries around the world to rein in greenhouse gas emissions, coal power generation is heading for a record year in 2021.
World coal consumption declined in 2019 and 2020 but will likely rise 9% to a record high of 10,350 TWh, according to the International Energy Agency's Coal 2021 report. The report, released Dec. 17, said the increased coal burn is due to higher natural gas prices and a rapid economic recovery in recent months that has driven electricity demand upward.
"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," Keisuke Sadamori, IEA director of energy markets and security, said in a press release.
Including coal used for cement and steel production, the IEA forecast overall coal demand to grow by 6% in 2021. While that is not as high as levels seen in 2013 and 2014, the IEA said that under certain weather conditions and economic growth scenarios, overall coal demand could break previous records in 2022 and remain at similar levels for two years.
Beyond 2021, a decade-long pattern of advanced economies weaning themselves from coal will likely continue, the report said. However, those declines will likely continue to be offset by emerging and developing economies in the near term.
More than half of the electricity generated by coal is produced in China, where the IEA expects coal-fired power to grow by 9% in 2021. In India, coal generation is forecast to grow by 12% in 2021. While the IEA expects China's coal demand growth to average less than 1% each year between 2022 and 2024, India is forecast to see coal demand growth of 4% each year in the same period.
The U.S. and Europe have also substantially increased coal generation in 2021 compared to 2020, when coronavirus-related lockdowns drove lower electricity demand and overall worldwide coal demand decreased 4.4%. However, coal power in those regions did not increase enough to go over 2019 levels.