Global coal prices are weakening again, dropping by 1% as renewable energy use continues to surge in many countries. According to Refinitiv data, coal prices now stand at US$140.25 per ton, down 0.99% from previous levels.
The global demand for coal is expected to slow down or even stagnate in 2024 and 2025. This is due to rising electricity demand in major countries balancing out the recovery of hydroelectric energy and the rapid expansion of solar and wind power, according to the latest update from the International Energy Agency (IEA).
In 2023, global coal usage actually grew by 2.6%, reaching a record high, driven largely by China and India, the world’s top two coal consumers.
Meanwhile, the UK is making history by closing its last coal-fired power plant at Ratcliffe-on-Soar, marking the end of 142 years of reliance on coal. This is a major step in the UK’s fight against climate change, as coal is one of the dirtiest energy sources and a significant contributor to greenhouse gas emissions.
In Greece, renewable energy is also making waves. September saw a record 463 hours (64.3% of the month) without electricity generated from lignite coal, beating the previous record set in May. Lignite production for the month was also the second-lowest on record at 159.4 GWh, with a year-to-date drop of 30% compared to 2023.
On the other side of the world, Australia is expected to see a major shift this summer. For the first time ever, combined solar and wind power could match coal-fired electricity generation, with renewables projected to generate between 8 and 9 TWh per month during the peak summer months.
This could signal a new era where renewable energy surpasses coal as Australia’s main power source.
