Countering the bullish outlook for coal demand in India, the International Energy Agency (IEA) has today predicted that demand for coal will slow down in the next five years as renewable sources will get more prominence in power generation.
In this context, the Director of Energy Markets of IEA, says that although coal has come under fire in the recent years due to its impact on air quality and carbon emissions, it is too early to say that the dominance of coal is on the verge of extinction.
IEA also has forecasted that by 2021, share of coal in the world’s power generation mix will shrink to 36%, from 41% in 2014. Notably, coal demand declined for the first time in this century in 2015.
During 2015 in China, coal-based power generation had dropped as demand for power became sluggish, and a new policy involving development of renewable and nuclear power generation was brought to the fore.
IEA also said that predominance of Natural Gas and renewable in the US had eroded demand for coal by around 15% in 2015.
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