Nearly $640 Billion Coal Investments Undercut By Cheap Renewables

  • Nearly $640 Billion Coal Investments Undercut By Cheap Renewables

Nearly $640 Billion Coal Investments Undercut By Cheap Renewables

However, the think tank adds the coal phase out challenge could be made harder by the development of 499GW of new coal power capacity that is planned or already under construction at a cost of £638bn.

It notes more than half of coal plants now in operation cost more to run than building new renewables and suggests by 2030, it could be cheaper to build renewables than run coal facilities in all major markets.

The shift is principally right down to the tumbling charge of wind and sun power, researchers from Carbon Tracker mentioned.

Building new wind and solar plants will soon be cheaper in every major market across the globe than running existing coal-fired power stations, according to a new report that raises fresh doubt about the medium-term viability of Australia's $26bn thermal coal export industry.

"Coal is the single largest source of greenhouse gas emissions globally and the risks of its continued use in the power sector are not being adequately addressed by regulators and the financial system", he said in a statement on the CIFF website.

In China, wind was already cheaper than any coal power, and solar electricity was forecast to on average cost less than existing coal later this year.

The report examined the economics of 95 per cent of coal plants which are operating, under construction or planned worldwide. It called on governments to block new coal projects and phase our existing coal plants, in part by changing regulations to allow renewable energy to compete on a level playing field.

Carbon Tracker states that to deal with environment adjustment successfully one coal plant needs to retire each day up until 2040.

That's already began to occur in the U.S., the place President Trump promised to restore the coal trade, however discovered that buyers were not prepared to again him.

However, several creating nations with limited bonds in between power vendors and also federal governments still permit coal plants to run also if the greater expenses are passed to customers.

"The market is driving the low-carbon energy transition but governments aren't listening".

'Especially for countries there, where there is a lot of investment in new coal, it actually doesn't make financial sense to do that anymore, ' said Sundaresan.

Some countries, particularly in Asia, are sticking with coal for power technology.

But the IEA says coal-fired electrical energy technology is ready to revel in its greatest ever decline - over 250 terawatt hours (TWh), or greater than 2.5%.

The IEA predicts the percentage of coal will decline from 38% in 2018 to 35% in 2024 - however that can nonetheless go away coal as via a ways the only greatest supply of power provide worldwide.

But it says the speed of the decline is expected to slow unless coal comes under additional pressure from stronger climate policies or lower-than-expected natural gas prices.

The IEA's Keisuke Sadamori claimed: "This is not the end of coal, since demand continues to expand in Asia".

He added: "The region's share of global coal power generation has climbed from just over 20% in 1990 to nearly 80% in 2019, meaning coal's fate is increasingly tied to decisions made in Asian capitals".

The UK is in the process of abolished coal-fired power generation and has used the United Nations climate change process to launch the Powering Beyond Coal Alliance.