Global coal-fired power plant fleet shrinks for first time on record

• 3 years ago (2020-08-05)
• David Flin

Coal 274

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According to results from Global Energy Monitor (GEM), the world’s fleet of coal-fired power stations has got smaller for the first time on record, with more capacity retired in the first 6 months of 2020 than the amount opened.

The 2.9 GW decline in them first half of 2020 takes the global total down to 2047 GW. The fall, including a decline in India, was due to slowed commissioning resulting from the Covid-19 pandemic, and record retirements in the EU from strengthened pollution regulations. Nevertheless, 189.8 GW of coal capacity is under construction globally, with another 331.9 GW in planning. This runs counter to calls from UN General Secretary António Guterres for a global moratorium on coal plants after 2020.

New coal development in H1 2020 was mainly in China. Outside of China, operating power capacity peaked in 2018, a trend that looks set to hold as planned retirements outside China exceed commissioning. These shifts mean that 50 per cent of the world’s operating coal fleet is in China.

During H1 2020, 18.3 GW of new coal plant started operating and 21.2 GW was retired, leading to a net decline of 2.9 GW in the global coal plant fleet. By comparison, the global coal fleet had grown by an average of 25 GW every six-month period for the two decades from 2000 to 2019. Of the 18.3 GW of newly commissioned plant, 11.4 GW was in China. Japan commissioned the second largest amount, at 1.8 GW.

Retirements of coal plants in H1 2020 were led by the EU plus UK (8.3 GW), and the USA (5.4 GW).

The declining trend outside China is likely to continue. An estimated 98.6 GW is due to retirement between now and 2024, exceeding the 91.3 GW currently under construction. Median construction time for coal plants outside China is five years.