Coal will still be king in Asia until at least 2027!
The rest of the world is working to transition towards renewable energy but Southeast Asia will retain the dominance of coal in its energy generation sector for at least eight more years, a new study revealed.
According to CNBC, a new Wood Mackenzie study revealed that coal is expected to continue its dominance in Southeast Asia’s energy sector. The product’s use will keep growing until its expected slowdown by 2027.
Research associate at commodity consultancy Wood Mackenzie, Jacqueline Tao, noted in the report that affordability remains one of the major stumbling blocks for Southeast Asia to transition to renewable energy.
Furthermore, the increase in power demand has been making it difficult for Southeast Asian countries to turn towards other energy sources besides coal. On the other hand, Tao noted that coal will decline in dominance sometime after 2030.
The International Energy Agency (IEA) also projected that demand for coal is expected to keep growing in the coming years. In 2018, demand ballooned by 0.7 percent, marking the second consecutive year of growth in the segment.
The IEA said that coal demand in a lot of regions in Asia can be attributed to the product’s availability. This is not surprising as demand for power continues to hike in several Southeast Asian countries, particularly in Vietnam and Indonesia.
Tao explained that the two countries are expected to make up for around 60 percent of the region’s overall power demand two decades from now. While coal is still the dominant force, the global drive towards renewable energy is expected to slowly change Indonesia and Vietnam’s generation methods.
The growth in Southeast Asia’s coal power demand will come at a time when many other regions across the globe shift overwhelmingly towards renewable energy generation. Even companies are starting to join the movement in renewable.
Among the companies driving change in the renewable energy sector is Siemens Gamesa. The energy company is recognized worldwide for leading initiatives that encourage the reduction of coal generation.
Berkshire Hathaway Energy is also one of the companies that are known to offer renewable solutions such as hydro, solar, geothermal, and wind power. The company reportedly has around 11.8 million clients to date.
In the European Union, Bulgaria, Greece, and France are working to ramp up their targets in renewable energy generation. The drive came after more organizations united to call for prompt solutions to climate change.
While Southeast Asian countries have expressed their desires to also join the renewable movement, it remains to be seen if the region will find solutions regarding availability and affordability.