While many countries are starting to shift away from coal as their primary energy source, it is obvious, according to Izvestia, that it will not be a simple or fast transition.
When coal prices fell to $35-40 a ton in March 2020, the lowest in the twenty-first century, it seemed to be the beginning of the end for what is considered as the dirtiest fuel.
Coal, in reality, has been declining in worldwide power production, falling from 50% to 30% in the last 50 years or so. However, in the middle of a global energy crisis, September 2021 is shattering all price records with $200 per ton, and coal is once again proving to be a reliable source of fuel.
According to Izvestia, although several nations want to transition away from coal, they were unable to find a viable replacement in a timely manner. The decrease in coal consumption in 2019 corresponded with the availability of inexpensive natural gas, a suitable replacement in a “carbon-free economy.”
However, gas prices rose this spring and are currently showing no signs of declining. In addition, wind energy, a renewable energy source that Europe favors, performed poorer than anticipated owing to the calm weather. Furthermore, the frigid winter reduced several nations’ energy supplies.
China is facing a severe coal scarcity, owing in part to its refusal of Australian coal last year, and its coal shortfall will not only drive market prices, but will also generate a deficit for the rest of the globe.
To cut a long tale short, according to BCS World of Investments expert Dmitry Puchkarev, it will take many decades to comfortably replace coal on the energy market. “It is not a matter of the next decade, since the world cannot just transition to a greener way of doing things. We are finding that customers who want a more ecologically friendly gasoline just do not have enough resource options. Because gas is getting more costly, they must return to coal “, Izvestia was informed by Puchkaev.
