Tuesday, July 16, 2024
 
 

Record EU and US coal plant closures offset by China coal boom in 2020

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A steep increase in coal plant development in China offset a retreat from coal in the rest of the world in 2020, resulting in the first increase in global coal capacity development since 2015, according to a new report led by Global Energy Monitor (GEM).

In total, China was home to 85% of the 87.4 gigawatts (GW) of proposed new coal plants in 2020, GEM said in a press release.

The report, Boom and Bust 2021: Tracking The Global Coal Plant Pipeline, is the seventh annual survey of the global coal plant pipeline. A record-tying 37.8 GW of coal plants were retired in 2020, led by the US with 11.3 GW and EU27 with 10.1 GW. President Trump’s promised coal boom was a bust as US coal plant retirements during Donald J. Trump’s four-year term rose to 52.4 GW, exceeding the 48.9 GW retired during Barack Obama’s second term.

China commissioned 38.4 GW of new coal plants in 2020, comprising 76% of the global total (50.3 GW), Global Energy Monitor said that outside China, 11.9 GW was commissioned and, taking into account closures, the global coal fleet outside China declined by 17.2 GW in 2020 – the third year in a row that coal power capacity outside China shrank.

Outside China, the coal plant development pipeline is collapsing in Asia, as Bangladesh, the Philippines, Vietnam, and Indonesia have announced plans to cut up to 62.0 GW of planned coal power. GEM estimates the policies will leave 25.2 GW of coal power capacity remaining in pre-construction planning in the four countries—an 80% decline from the 125.5 GW planned there just five years ago, in 2015.

Globally, commissioning of new plants fell to 50.3 GW in 2020, a decline of 34% from 2019, as projects in development struggled to obtain financing and many projects were delayed due to the Covid-19 pandemic. In India, coal power capacity rose by just 0.7 GW in 2020, with 2.0 GW commissioned and 1.3 GW retired.

New construction starts fell 5% from 28.3 GW in 2019 to 27.0 GW in 2020. However, outside of China, new construction starts fell by 74%, from 21.1 GW in 2019 to 5.5 GW in 2020.

“In 2020, we saw country after country make announcements to cut the amount of coal power in their future energy plans,” GEM’s Coal Program Director Christine Shearer said. “We are very likely seeing the last coal plants in planning throughout most of the world.”

“Dozens of new coal power projects, equal to the total coal power capacity of Germany and Poland combined, were announced last year in China,” CREA’s lead analyst Lauri Myllyvirta said, adding that these projects are a key test of the country’s pledge to peak emissions before 2030 and reach carbon neutrality before 2060. She stressed that cancelling them would put the country on track to the low-carbon development the leadership says it wants to pursue.

 

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Co-founder / Director of Energy & Climate Policy and Security at NE Global Media

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