October 24, 2019-In a sign that renewable energy and natural gas are increasingly gaining market power, a study released today by the Carbon Tracker Initiative finds that 79 percent of coal generators in the European Union are running at a loss.
“Owing to relentless competition from ever lower-cost wind and solar, and gas, these losses could be sustained for the foreseeable future,” according to the Carbon Tracker Initiative, a London-based think tank focused on climate change.
The new study suggests the coal industry cannt survive, unless it is supported by heavy government subsidies, due to sustained competition from wind and solar power and temporarily cheap natural gas.
“EU coal generators are haemorrhaging cash because they cannot compete with ever-cheaper renewables and gas and this will only get worse,” said Matt Gray, head of power and utilities at Carbon Tracker.
Losses for coal power plants and utilities could reach €6.6 billion ($7.3 billion) this year.
Coal and Climate Change
Coal is still the world’s top source for electricity, according to the International Energy Agency. It is also a leading source of carbon dioxide emissions, which cause climate change.
The IEA predicts that renewable-based power capacity will grow worldwide by 50% between 2019 and 2024 as costs of generating electricity from renewable energy falls. Earlier this year, the agency found that carbon dioxide emissions rose 1.7 percent in 2018, with China, India and the United States accounting for 85 percent of the increase.
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