Author: Bloomberg Source: Sydney Morning Herald Date: 07 August, 2013
The world’s richest nations, moving to combat global warming, are cutting government support for new coal-burning power plants in developing countries, dealing a blow to the world’s dominant source of electricity.
First it was US President Barack Obama pledging in June that the government would no longer finance overseas coal plants through the US Export-Import Bank.
Next it was the World Bank, then the European Investment Bank, dropping support for coal projects. Those banks have pumped more than $US10 billion into such initiatives in the past five years.
'Clean coal' would push up power bills more than wind, solar or gas: analysts
Adam Morton February 3 2017
"Clean coal" plants that the Turnbull government has flagged could get clean energy subsidies are more expensive than solar, wind and gas-fired power and would lead to higher electricity price rises, analysts have warned.
Support for what the government calls "clean coal" stations - ultra-supercritical plants, which still emit greenhouse gas - would also be at odds with a 2015 OECD agreement under which Australia agreed not to fund any type of coal power in developing countries if cleaner options were available.
However demand for coal will exist in developing countries for many years.
Plans for coal-fired power in Asia are 'disaster for planet' warns World Bank
Experts have offered stark warnings that proposed power plants in India, China, Vietnam and Indonesia would blow Paris climate deal if they move ahead
The World Bank president, Jim Yong Kim, said that new coal-fired power plants ‘would spell disaster for us and our planet’. Photograph: Bloomberg via Getty Images
This article is 12 months old
Suzanne Goldenberg US environment correspondent @suzyji
Friday 6 May 2016 04.02 AEST Last modified on Friday 6 May 2016 04.30 AEST
Is coal the only way to deal with energy poverty in developing economies?
June 14, 2016 Shabbir Ahmad
As the world moves to combat climate change, it’s increasingly doubtful that coal will continue to be a viable energy source, because of its high greenhouse gas emissions. But coal played a vital role in the Industrial Revolution and continues to fuel some of the world’s largest economies. This series looks at coal’s past, present and uncertain future.
The availability of efficient and reliable energy for industrial, agricultural and household use is critical for productivity growth and improvement in human wellbeing. But many people across the planet live in a state of energy poverty.
A large population in developing economies, particularly in Africa, relies on traditional biomass sources of energy that themselves cause problems, such as severe deforestation and carbon pollution. What’s more, many inhabitants of these countries face power outages of up to 20 hours a day.
An economical and sustainable energy source for deprived populations is clearly needed.
Enter coal
Coal is a relatively cheap, abundant and well-established source of energy, but it’s also a major source of carbon pollution. Hence the controversy about whether burning coal can end energy poverty in the coming decades.
In the past, coal has occupied a significant share in the energy mix of developing economies, but it has been under attack due to its emissions, which include sulphur dioxide, nitrous oxide and carbon dioxide.
Likewise, other developing countries including India are changing their energy mix by shifting their focus to renewables to reduce their reliance on coal-based energy. Although more than 50% of India’s new electricity generation .. http://www.worldenergyoutlook.org/media/weowebsite/2015/IndiaEnergyOutlook_WEO2015.pdf .. is expected to be met by renewables, the country still needs to rely on coal-based generation to meet expanding demand.
But the slowdown in world coal demand is partly due to China’s structural shift away from construction and export-led manufacturing, which has significantly reduced coal prices. This has, in turn, slashed revenues of many exporting countries. And the collapse in prices is resulting in the closure of many mining businesses .. http://oilprice.com/Energy/Coal/The-Decline-Of-The-Coal-Industry-Is-Long-Term-And-Irreversible.html .. as companies are unable to recover production costs.
Still, energy-poor developing economies need coal as a cheap and readily available resource to provide electricity for their growing populations unless they find a way to completely replace it with alternative renewable sources.
Current and future trends
Many developing economies are facing a huge shortfall in electricity and are expanding their energy production capacity. This situation is likely to intensify as the world population increases. By the end of 2030, developing countries will need about 950 terawatt-hours .. http://www.se4all.org/sites/default/files/l/2013/09/Special_Excerpt_of_WEO_2010.pdf .. electricity to meet their energy needs.
Many developing economies, including China and India, are connecting millions of their inhabitants to coal-based electricity systems .. http://www.netl.doe.gov/File%20Library/Research/Coal/Reference%20Shelf/role_of_coal.pdf . Over the last two decades, China has been able to electrify about 700 million households through coal-fired energy production.
India is still meeting the majority of its energy demand from coal-fired electricity generation and was among the world’s three largest coal importers in 2015.
Prospects of coal energy
Energy poverty is a major human and environmental crisis. A balanced energy mix with a high degree of physical safety, low environmental hazards and sustainable supply prospects is essential for poverty alleviation and energy security.
But, in the face of competing alternative energy sources, the role of the coal industry in energy poverty alleviation has become even more challenging.
While renewable energy sources are in their infancy and facing many uncertainties, developing economies have a long way to go before they can completely abandon fossil fuel energy sources. Indeed, these countries need major structural reforms and risk-tolerant investment capital in the renewable sector if the twin goals of reduced carbon emissions and the elimination of energy poverty are to be achieved.
All that means the coal industry will potentially remain a major part of the world’s energy mix. But it needs drastic measures to produce clean and efficient energy if it is to play a role in energy security and poverty alleviation without the adverse environmental effects that threaten to introduce other risks to water, global climate and food security.
The author would like to thank Associate Professor John Steen and Dr Jo-Anne Everingham for their valuable comments on this article.
This is the third article in our series on the past, present and future of coal. Look out for others over the next week or two.
The Conversation
Shabbir Ahmad, Postdoctoral Research Fellow, Australian Institue of Busines and Economics, The University of Queensland, Australia, The University of Queensland