Excluding China, India Leads Coal Power Surge in Asia Followed by Vietnam & Indonesia

• 21 December 2023
• Uncategorized
• 1419 Views

India, excluding China, is spearheading the construction of new coal-fired power capacity in Asia, boasting an impressive 31.6 gigawatts (GW) in progress. This substantial figure is part of the broader 67 GW currently under construction in the region, with Indonesia and Vietnam making notable contributions, the Global Energy Monitor (GEM) reported in July 2023.

The report underscores India’s pivotal role, accounting for 84% of the total construction activity outside China, even amid a global downturn in new coal power projects. Flora Champenois, Project Manager for the Global Coal Power Tracker, highlighted this trend, noting its divergence from the global shift towards sustainable energy.

As revealed by the Bloomberg Global Coal Countdown, there is a discernible decline in new coal power construction starts, with 2023 projected to reach a nine-year low. GEM, tracking annual coal plant construction starts since 2015, anticipates a significant drop to 2 GW of new coal capacity starts in 2023 (excluding China), a notable departure from the average annual coal construction start of 16 GW observed from 2015 to 2023.

In contrast, China has initiated the construction of coal power plants with a total capacity of 37 GW, a figure that might escalate further with pending data from Q3 and Q4. GEM’s October 2023 report indicates that 110 GW of coal power capacity is under consideration outside China, encompassing 83% of cumulative proposed coal power in India, Bangladesh, and Indonesia.

These findings come on the eve of the COP28 summit, highlighting the critical challenge of balancing coal dependency with climate goals. With over 95% of the coal plant capacity commencing construction this year outside China, the summit discussions on climate action and sustainable energy solutions are poised to be intense.

• Energy and Environment