Global coal demand to remain broadly unchanged through 2025

Global coal demand to remain broadly unchanged through 2025

The International Energy Agency’s latest update on global coal market trends forecasts that coal demand will stabilize in 2024 and 2025.?

This stability comes despite a gradual recovery in hydropower and significant growth in solar and wind energy, as increased electricity demand in key economies counterbalances these factors.

According to the IEA’s Coal Mid-Year Update , global coal usage surged by 2.6% in 2023, reaching record levels.?

This increase was primarily fueled by robust growth in China and India, the world’s top coal consumers. The rise in coal demand spanned both the electricity and industrial sectors, driven particularly by the need to compensate for reduced hydropower output and escalating electricity consumption.

Also read: Power Down to Power Up: Why Shutting Coal Plants is a Win ?

“Our analysis shows that global coal demand is likely to remain broadly flat through 2025, based on today’s policy settings and market trends,” said Keisuke Sadamori, IEA Director of Energy Markets and Security.?

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Muthee Wanyoike

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