BAKU, Azerbaijan, December 25. In 2023, the global demand for coal is anticipated to experience a modest increase of 1.4 percent, reaching a new record-high at approximately 8.536 billion metric tons, Trend reports.
According to the International Energy Agency (IEA), in 2022, the demand for coal hit an all-time high, reaching 8.415 billion metric tons, marking a 4-percent increase. The agency explained that this surge was predominantly fueled by the expanding needs of countries with a substantial reliance on coal, notably China and India.
Additionally, the exceptionally steep prices of natural gas, coupled with a generally diminished output from nuclear and hydropower sources, contributed to a heightened demand for coal in power generation. Specifically, there was a 4-percent uptick in coal demand for power generation, reaching 5.687 billion metric tons. Meanwhile, the use of coal for non-power purposes also saw a notable increase, rising by 3.7 percent to 2.728 billion metric tons.
As the IEA pointed out, the momentum behind coal demand growth is tapering off, influenced by subdued economic prospects and the waning factors that drove coal-fired power generation in 2022. Concurrently, the trajectory of global coal demand is projected to shift further eastward, with China, India, and ASEAN countries collectively accounting for three-quarters of the global demand. In the early years of the century, this share stood at around 35 percent, which was lower than the combined share of the EU and the US at that time.
In raw numbers, the surge in coal demand for 2023 is projected to be most pronounced in China, with an increase of 220 million metric tons or 4.9 percent, closely trailed by India, where demand is expected to rise by 98 million metric tons or 8 percent, and Indonesia, experiencing a growth of 23 million metric tons or 11 percent.
On the flip side, the most substantial reductions are anticipated in the EU, witnessing a decline of 107 million metric tons or 23 percent, and the US, where a decrease of 95 million metric tons or 21 percent is foreseen. These declines are primarily attributed to the electricity sector but are also influenced by sluggish industrial activity.