Global coal-fired power generation capacity increased last year for the first time since 2019, despite warnings that coal-fired power plants must close at least 6% each year to avoid a climate emergency.
Coal-fired power generation capacity increased by 2% last year, due to an increase in new coal-fired power plants across China and a slowdown in plant closures in Europe and the United States, according to a report by Global Energy Monitor.
About 69.5 gigawatts (GW) of coal-fired power plants came online last year, two-thirds of which were built in China, the report said. Factories were also built in Indonesia, India, Vietnam, Japan, Bangladesh, Pakistan, South Korea, Greece, and Zimbabwe.
Meanwhile, the pace of coal-fired power plant closures has slowed in the US and Europe, with more than 21GW retired last year. This resulted in annual net additions of approximately 48.5GW, the highest since 2016.
The report's authors said coal-fired power plants need to be shut down at a faster pace and China needs to adopt stricter regulations on capacity expansion.
Flora Champenois, an analyst at Global Energy Monitor, said: “Otherwise, we risk forgetting to meet the goals of the Paris Agreement and reap the benefits of a rapid transition to clean energy.'' There is,” he said.
Climate scientists say that if governments want to limit global warming to within 1.5 degrees Celsius above pre-industrial levels, all coal-fired power plants must be closed by 2040 unless they are equipped with effective carbon removal technology. It says it should be closed by 2020.
According to the report, an average of 126GW of coal-fired power plants will need to be retired over the next 17 years, up from the current 2,130GW of coal-fired power plants, which is approximately two coal-fired power plants per week. It is said to be equivalent.
Mr Champenois said last year's expansion of coal-fired power plants was “an anomaly” as there were increasing signs of a “change in direction”. “But countries that plan to retire coal-fired power plants should do so sooner, and countries that have plans for new coal-fired power plants should ensure that they are never built.”
Research from Capital Economics suggests that demand for coal-fired power generation in China may decline as low-carbon options accelerate.
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The report said the resurgence of hydropower this year and China's expansion of wind, solar and nuclear power could mark the beginning of a steady decline in coal demand.
Champenois said the retirement of coal-fired power plants is expected to accelerate across Europe and the United States this year, with fewer countries starting to build new ones.
The report said less than 4GW of new projects were started outside China last year, a quarter of the country's annual average from 2015 to 2022.
