The global growth in new coal-fired power generation capacity reached its lowest level in two decades in 2024, according to a report released on April 3 by a coalition of researchers and NGOs, including Global Energy Monitor and E3G. The new coal plants that went online in 2024 amounted to just 44 gigawatts (GW), significantly down from 72 GW in 2023 and far below the peak of 107 GW reached in 2015.
Despite efforts by many countries to reduce their reliance on coal, over a third of the world’s electricity still comes from this fossil fuel. The United Kingdom, for example, officially ended its coal usage with the closure of its last coal plant in 2023. However, the pace of new coal plant construction remains robust in Asia, particularly in China and India, which now account for the majority of new coal projects. Both countries initiated more coal plant construction in 2024 than in any previous year.
Regional Concentration of New Coal Plants
The report indicates that only eight countries initiated new coal projects in 2024. Among these, China and India dominate, further solidifying their central role in global coal demand. China, which consumes a third of the world’s coal, continues to expand its coal fleet, despite setting records for renewable energy growth. This highlights the nation’s continued dependence on coal as it balances its energy needs with an ambitious transition to cleaner energy sources.
However, the number of new coal plant permits issued in China dropped to its lowest level in three years, suggesting a potential shift in the country’s future coal expansion policies. Other Southeast Asian nations, such as Indonesia, Malaysia, and the Philippines, have scaled back their coal plans, while Vietnam is actively pursuing a path away from coal use, indicating a regional divergence from coal expansion.
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Contrasting Trends in Asia and the West
The report also highlights that countries like Japan and South Korea continue to pursue technologies aimed at decarbonizing coal combustion, including ammonia injection. However, the report’s authors argue that these methods are costly and not scalable on a large scale. The report does not provide a long-term economic evaluation of the viability of such technologies.
In the United States, President Donald Trump approved the restart of coal plants, signaling a return to fossil fuels. However, analysts from the report noted that Trump’s first term had already demonstrated the difficulty of reversing the coal decline in the country, largely due to the aging of its energy infrastructure. The shift towards natural gas and renewable energy sources has made it increasingly difficult for coal to remain competitive in the U.S. energy market.
While coal power still plays a significant role globally, its growth has stagnated, particularly in the West, where renewable energy adoption and government policies are increasingly steering countries away from fossil fuels. The report suggests that the global shift away from coal may accelerate as renewable energy technologies become more cost-competitive and as countries strive to meet their climate goals.
Future Outlook and Challenges
The report’s findings reflect a broader trend of declining coal use, especially in industrialized nations, even as developing countries continue to rely heavily on coal for economic growth and energy security. The coming years will likely see continued investment in renewables, with coal being phased out in many parts of the world, particularly as the costs of renewable energy technologies continue to fall.
However, the situation remains more complex in Asia, where coal remains a critical part of energy systems in countries like China and India. These nations face significant challenges in balancing their immediate energy needs with long-term environmental goals. While renewable energy growth in these regions is impressive, it is not yet sufficient to offset the continued reliance on coal. As global coal expansion slows, it will be crucial to monitor the policies and transitions in major coal-consuming countries to understand the future trajectory of the global energy landscape.
This article is originally published on energynews.
