India’s coal demand growth fastest amid record global use: IEA – Times of India

NEW DELHI: India’s coal demand growth is expected to be the fastest in the world at 7%, followed by the European Union’s (EU) 6% and China’s less than 1% as global consumption is poised to hit a record 8 billion tonne this year, the International Energy Agency said on Friday.
The agency’s annual coal market report listed higher consumption for power generation as the primary reason propelling demand for the dry fuel. It said post-pandemic revival in electricity demand, low hydel output and EU switching to coal-fired power amid gas crunch shifted the burden on coal.
“Global coal-fired power generation is set to rise to a new record of around 10.3 terawatt hours this year, while coal production is forecast to rise by 5.4% to around 8.3 billion tonnes, also an all-time high,” the report said.

Forecasting a 4% growth in India’s power demand, the report expects the country’s coal demand to increase by 70 million tonnes (MT). In comparison, China’s power demand growth is pegged at 7% and coal consumption growth at 18 MT.
Recent industry reports had put the all-India electricity demand growth at 10.6% on a year-on-year basis in the 8 months between April and November period of the current fiscal (April 1, 2022-March 31, 2023). Most of this demand was met by coal-fired power plants, pushing their run rate to over 58% but stretching the coal transport infrastructure.
The IEA report said coal demand in India, the second-largest consumer, increased by 14%, or 128 MT, in 2021. But other countries also reported significant increases in coal consumption, including the United States that saw a 15% increase at 66 MT, Germany 19% at 26 MT and Poland 12% at 13 MT.
Only a few countries recorded declines last year, with South Africa posting the largest fall at 5% or 9 MT.
The agency saw the current level of coal consumption lasting till 2025 as continued strong demand in emerging economies in Asia offsets reductions in mature markets.