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| Thu, 9th Apr 2020 14:48:00 |
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Nearly half of global coal plants will be unprofitable this year, study shows |
Nearly half of all global coal plants will run at a loss this year, new research suggests.
This comes despite proposals in China to build more plants to stimulate its economy in the wake of the coronavirus pandemic, according to Carbon Tracker, a London-based environmental think tank.
The organisation analysed the profitability of 95 per cent of coal plants in operation or planned around the world.
Looking at 6,696 existing plants and 1,046 in the pipeline, it found that 46 per cent will be unprofitable this year, up from 41 per cent in 2019.
This is based on estimated revenues from wholesale power markets, ancillary and balancing services and capital markets, as well as running costs, carbon pricing and pollution policies.
As renewable energy and cheaper gas outcompete coal, 52 per cent of coal plants are expected to be unprofitable by 2030, the think tank added.
China, which produces and consumes about half the world's coal, might be considering building more coal plants to re-energise its economy once the Covid-19 pandemic has passed, after the National Energy Administration announced it was ready to relax rules on coal power investment, the report said.
Nearly 60 per cent of China's existing coal plant fleet is running at an underlying loss, it added.
"China and other governments may be tempted to invest in coal power to help their economies recover after the Covid-19 pandemic, but this risks locking in high-cost coal power that will undermine global climate targets," said Matt Gray, co-head of power and utilities at Carbon Tracker.
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