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Europe shifts back to coal

Coal power plant. (Credit Pixabay.com)

This represents a “U-turn” from Europe’s efforts in recent years to foster new energy sources, restrict coal power generation in order to reduce greenhouse gas emissions…reports Asian Lite News

Many European countries are considering turning back to coal to secure energy supplies as gas supplies from Russia slump amid EU sanctions in recent weeks.

Germany, Austria, Poland, the Netherlands and Greece are among the first European nations to reopen coal power plants or take measures to support coal power, underlining the importance of energy supply security in the upcoming winter, Xinhua news agency reported.

This represents a “U-turn” from Europe’s efforts in recent years to foster new energy sources, restrict coal power generation in order to reduce greenhouse gas emissions and reduce the proportion of coal power in the energy mix.

UNEXPECTED SITUATION

The European Commission noted on Monday that “some of the existing coal capacities might be used longer than initially expected” because of the new energy landscape in Europe.

“We know that the energy mix and the plans of member states will adjust slightly because we are in an unexpected situation,” Commission spokesman Tim McPhie said at a press briefing.

Russia’s energy firm Gazprom has significantly reduced the flow of gas through the Nord Stream 1 pipeline to Germany recently.

Following the gas supply cut, the German government introduced on Sunday several energy-saving measures, which include reducing the use of gas for power generation and industrial activities, and filling up storage facilities.

“Gas consumption must continue to fall, and more gas must be put into storage, otherwise things will really get tight in winter,” German Minister for Economic Affairs and Climate Action, Robert Habeck said on Sunday.

Austrian energy company OMV said on Monday that the country was set to receive half the usual amount of natural gas from Russia for a second day. Austria gets about 80 per cent of its natural gas from Russia.

The energy crisis has also caught Greece in a difficult situation during its transition to green economy.

Coal production has been ramped up at Greece’s largest coal mine near the northern city of Kozani.

While inaugurating a new solar facility in northern Greece in April, Greek Prime Minister Kyriakos Mitsotakis announced a 50 per cent hike in lignite production through 2024 to build up reserves. Plans to retire more coal-fired power stations are halted.

“Certainly, for the next two years, it would make sense increasing coal-fired energy generation by ramping up its mining by 50 per cent so that we cut reliance from gas in the short-term,” Mitsotakis said.

Tugs pull the Russian pipe-laying vessel Fortuna out of the harbor onto the Baltic Sea. The special ship is being used for construction work on the German-Russian Nord Stream 2 gas pipeline in the Baltic Sea. Photo: Jens Büttner/dpa-Zentralbild/dpa

TEMPORARY MEASURES?

The Russian-Ukrainian conflict forced many European nations to reconsider their energy supplies. They insisted that the “reverse” of the energy policy and measures are short-lived and will help avoid gas shortage in the upcoming winter.

The German government said that gas power plants were replaced with coal-fired power plants for electricity generation to reduce gas consumption, while insisting that the surprise U-turn on energy policy did not mean a withdrawal from the coal exit plan.

Before the conflict, the German government alliance had even decided to bring the coal phaseout forward, “ideally” from 2038 to 2030.

In the first quarter of the year, coal remained Germany’s most important energy source, accounting for 31.5 per cent of total electricity production.

The Dutch government has also given the green light to coal-fired power stations, which are allowed to run at full power until 2024.

By increasing coal production, the Dutch government hopes to save 2.3 billion cubic metres of gas each year.

In another development, Austria announced on Sunday that it would reopen a mothballed coal power plant to cope with potential power shortages due to reduced natural gas supplies from Russia.

The Austrian government said it would work with electricity supplier Verbund Group to reactivate the plant in the southern city of Mellach.

In addition, Poland, one of the European Union’s most coal-dependent country, has announced measures to subsidise coal for households and housing cooperatives amid coal shortages and soaring prices.

Around 70 per cent of Poland’s electricity comes from coal, by far the highest proportion in the European Union. One-third of the Polish households use coal to heat their homes.

Under the Polish government’s proposals, consumers will be able to buy up to three tons of coal at around 1000 zlotys ($227) per ton, while the market price can reach up to 3000 zlotys ($681) per ton, largely due to the country’s ban on Russian coal imports in April. (1 zloty= $0.227)

ALSO READ: Europe warned of total shut down of Russian gas exports

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Business India News

India to ramp up wind and solar energies amid coal crisis

The experts said that it is counter-intuitive that the government is actually looking to auction new mines, re-open old mines and old thermal power plants, which will not only create stranded assets but exacerbate climate change…reports Vishal Gulati

Amidst the coal crisis where the Centre has invoked an emergency law to operate idle coal import-based utilities, energy transition experts believe the electricity generation for 1.35 billion people based on expensive imported coal for blending is commercially unviable — both high and inflationary.

They say combined with the global pandemic and the Ukraine-Russia war, which has increased coal prices internationally, it should be a death knell for coal.

The time to ramp up wind and solar is now so that India is prepared to deal with a warming world.

Heatwaves are sweeping across India, with March recording the hottest in 122 years, resulting in high energy demand touching 207GW in April-end, the worst crisis in over six years. Demand is far exceeding supply resulting in power outages by state DISCOMs.

With imported coal prices at an all-time high, DISCOMs are wary of buying expensive power.

The experts told  that it is counter-intuitive that the government is actually looking to auction new mines, re-open old mines and old thermal power plants, which will not only create stranded assets but exacerbate climate change.

Rather it should be looking at better energy planning, and diversifying the energy mix keeping in mind emissions, global disruptions and the inflationary nature of fossil fuels.

Power Ministry officials say the installed capacity of electric grid is close to 340 GW. Seventy per cent of this is coal powered. There isn’t enough supply is what is being said. The reality is there isn’t adequate planning due to which coal transport is delayed and power generators can’t transmit power in time.

No more coal mines are needed in reality although Union Coal and Mines Minister Pralhad Joshi last week proposed to sell 20 abandoned mines with extractable reserves at 380 million tonne, with an intention to extract 30-40 million tonne.

The reason for opting the dirtiest fossil fuel is that India, world’s third largest energy consumer with electricity demand growing by 4.7 per cent each year, is going to be tough to put new money into renewable energy.

But experts believe this is exactly what needs to be done with the pathway that the coal sector is facing investor challenges on funding, challenges on logistics and planning, as well as volatility in prices.

“Frequent climate extremes and power shocks only indicate how much climate action and energy transition needs are intertwined and affected by not just domestic events but also regional and international tremors,” Global Wind Energy Council (GWEC) India Policy Director Martand Shardul said.

“Stocking coal through increased domestic production and imports might yield relief, however, these exigencies demand a rapid shift to clean energy and enhanced renewable energy investments to boost social good, planetary health, and economic resilience.”

Sounding a cautionary note, International Institute for Sustainable Development Policy Advisor Balasubramanian Viswanathan said: “In the midst of the power shortage crisis, we need to take whatever short-term measures are available to keep the fans on. But some interventions have medium- and long-term implications, and here we must be very careful.

“We absolutely must not make new investments in our coal-dependent power system, which will just contribute to worse crises in the future. From a purely financial perspective, there is also a big risk of stranded assets. The government should instead drive investments at scale in renewable power and further incentivise grid-balancing technology, including battery storage.”

Believing India needs to aggressively invest in renewables — from 10-12 GW per year to 35-36 GW per year, WRI India, Energy Program, Director Bharath Jairaj said: “If we are to meet the 2030 target of 500 GW of non-fossil fuel capacity, we have to aggressively support investments in energy storage and re-introduce favourable regulatory conditions for rooftop and behind-the-metre investments in renewable energy.”

It is not a shortage of coal, says Aarti Khosla, Director with New Delhi-based Climate Trends.

“Neither is it a shortage of power capacity. Combined with the global pandemic, and the Ukraine-Russia war, which has increased coal prices internationally, it should be a death knell for coal but ironically it is our only option to bring more power on immediately. The time to ramp up wind and solar is now so that we are prepared to deal with a warming world,” Khosla told IANS.

Sunil Dahiya, analyst with the Centre for Research on Energy and Clean Air (CREA), said it is time to ditch the dirty and embark on an accelerated energy transition journey for true energy security.

“Generation based on expensive imported coal or gas or buying expensive power at exchange is commercially unviable. DISCOMs should buy cheaper renewable energy and supplement it with flexible generation sources,” added Vibhuti Garg, an Energy Economist (Lead India) with the Institute for Energy Economics and Financial Analysis (IEEFA).

ALSO READ-Coal, Korba and climate, a case study for India’s energy transition

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-Top News Asia News

China’s coal output boost poses threat to climate

Xi stated that the country could not simply introduce bars on coal production as electricity demand has grown exponentially in China…reports Asian Lite News

Chinese President Xi Jinping recently (March 5) called for investments in coal technologies to fight the energy crisis, breaking the promises he had made for climate goals.

President Xi’s declaration about coal output enhancement would pose a threat to the global community as well as a threat to the climate. There are major reasons why the Chinese government’s prejudice toward coal could be a crisis for the country and globally, reported The HK Post.

Xi stated that the country could not simply introduce bars on coal production as electricity demand has grown exponentially in China over the years. To sustain the demand, Beijing increased coal production.

China accounted for 33 per cent of CO2 emissions globally in the year 2021. Between the years 2019 and 2021, C02 emissions increased by 750 million tonnes. Coal remains the main reason for increasing CO2 emissions.

Moreover, the Chinese government has developed coal as their main energy source. Around 50 per cent of energy consumption in the country is utilized from coal, reported The HK Post.

Also, China poured a significant amount of money into other countries for developing coal power infrastructures. Burning coal comes at a greater cost for the environment. Too much dependence on coal for construction and allied activities has also become a cause of concern in the country.

Consequently, Beijing witnessed a rise in pollution due to burning of the fossil fuel. It is pointed out that one of the main factors attributed to air pollution is coal combustion. Around this time schools were closed in the city and outdoor activities were restricted. The fact remains that coal production was substantially increased at that time after a decline in supply chains owing to the energy crisis and emission cuts, reported The HK Post.

The Paris Climate agreement intends to contain global warming to 1.5 degrees Celsius. But the Chinese government’s objective to run the coal plants at full capacity is not to be seen as a positive note for the climate goal.

When countries have restricted their coal capacity by 8.1 gigawatts in 2018 – 19, China accumulated 43GW to their capacity. In the UN Assembly last year President Xi Jinping suggested zero carbon emissions by the year 2060. But researchers suggest China needs to decarbonize faster than their predicted timelines because by 2060 China could significantly raise carbon emissions and damage the climate around the world. (ANI)

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India News Lite Blogs

Coal, Korba and climate, a case study for India’s energy transition

The study points out that Korba has an aging formal workforce — at least 70 per cent of SECL and National Thermal Power Corporation (NTPC) workers are 40-60 years of age…reports Asian Lite News

Korba district in Chhattisgarh has 13 operational mines. Four more mines are in the pipeline. Of the operational ones, as many as 10 are loss-making, and just three are profitable — Gevra, Kusmunda and Dipka — producing 95 per cent of the coal.

It is a quintessential example of an economy that will need to immediately think of what to do when India starts to ‘phase down’ coal as promised at the annual global climate change conference (COP26) last year.

Coal, part of the fossil fuel basket, is the largest contributor towards emissions and hence planned to be phased down as part of climate action to restrict emissions so that the global temperature rise is restricted to 1.5-degree Celsius compared to the pre-industrial temperatures.

A latest study has found that Korba’s coal-centric economy has stymied the growth of other economic sectors, including agriculture, forestry, manufacturing, and services even as the poor socio-economic status and high dependence on the coal economy make it highly vulnerable to the unplanned closure of mines and industries, leading to severe socio-economic consequences.

Keeping in mind that India’s biggest coal and power districts will face energy transition challenges much earlier than anticipated — it is predicted that Korba will reach its peak in 2025 — the economic restructuring and development intervention will be essential, the latest study by International Forum for Environment Sustainability and Technology (iFOREST) has pointed out.

‘Korba: Planning a Just Transition for India’s Biggest Coal and Power District’ was launched earlier this week.

“Our study of Korba in Chhattisgarh essentially shows just transition in India is about re-development of the coal regions. Major policy and legal reforms in land, labour, and finance will be required to enable a smooth just transition. We need to develop a strategic roadmap for this and secure necessary finances to support it, both domestically and through international cooperation,” Chandra Bhushan of iForest said.

Very clear why Bhushan says so. As mentioned in the report, with declining coal production, for the mining companies (here, South-Eastern Coalfields Limited (SECL)) shutting down all eight unprofitable mines in Korba district in the next few years is a win-win situation as the resources saved can be diverted to start a just transition in Korba.

Despite having coal mines and multiple power plants and other industries such as Balco Plant, the district is a Schedule V district with over 40 per cent tribal population and declared ‘Aspirational District’ with 41 per cent people living below the poverty line and over 32 per cent of the district’s population being ‘multidimensionally poor’ with limited access to healthcare, education, and basic amenities.

The numbers are alarming considering the fact that Korba produces over 16 per cent of India’s coal and is also an electricity hub, with 6,428 MW of thermal power capacity. Clearly, the coal-based economy did not do justice to the poorest of the poor and that makes the task of transition harder in view of the human resources.

The study points out that Korba has an aging formal workforce — at least 70 per cent of SECL and National Thermal Power Corporation (NTPC) workers are 40-60 years of age.

“Their retirement can be synchronized with plant and mine closure, making the transition of the formal workers less of a challenge. The biggest challenge is the re-employment of informal workers, who constitute over 60 per cent of the workforce in the coal industry. They will require job support and reskilling. Skilling for the new green economy is another challenge,” the report mentions.

Speaking at the launch of the study report, Secretary, Coal Ministry, Anil Kumar Jain, had said, “A place-based approach is the answer to ensuring a just transition as districts have different issues. A strategic approach will be needed as there is a big human aspect involved in the energy transition.”

He also suggested re-purposing mining land can be a key opportunity.

The CEO of NITI Aayog, Amitabh Kant, welcomed the idea of the report and said, this can become the template in terms of impact on jobs and livelihood, revenue and other social sector investments the energy shift will have consequences for coal dependent district and states’ just transitional result as a concept around the world to ensure that cold dependent towns of regions do not suffer.”

“I entirely agree that a strategic plan needs to be developed in the sector to prevent closures of mine and socio-economic disruptions and the policy should include components of cold phase out strategy at the national state level coal-based power phase out plan,” he said.

“Just transition is not just about climate change action; it is an opportunity to reverse the resource curse in the coal districts. The next 10 to 20 years will be crucial for Korba to plan and implement a just transition. We need to have the right policies and governance mechanisms to ensure that this opportunity to build a new inclusive economy is realized,” said Srestha Banerjee, Director, Just Transition, iFOREST.

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-Top News UK News

Britain, 190 countries consign coal to history

To meet the goals of the Paris Agreement to limit global temperature rises to 1.5 degrees, the global transition to clean power needs to progress four to six times faster than at present, reports Asian Lite News

The end of coal — the single biggest contributor to climate change — is in sight thanks to the UK securing a 190-strong coalition of countries and organisations at the UN climate negotiations (COP26), with countries such as Poland, Vietnam, Egypt, Chile and Morocco announcing clear commitments to phase out coal power.

Wednesday’s commitments, brought together through UK-led efforts, including the new ‘Global Coal to Clean Power Transition Statement’, encompass developed and developing countries, major coal users and climate vulnerable countries.

This includes 18 countries committing for the first time to phase out and not build or invest in new coal power, including Poland, Vietnam, and Chile, marking a milestone moment at COP26 in the global clean energy transition.

This statement commits nations across the world to: end all investment in new coal power generation domestically and internationally; rapidly scale up deployment of clean power generation; phase out coal power in economies in the 2030s for major economies and 2040s for the rest of the world; and make a just transition away from coal power in a way that benefits workers and communities.

This is on top of China, Japan and Korea, the three largest public financiers of coal, committing to end overseas finance for coal generation by the end of 2021, announced in 2020 during the UK’s incoming COP26 Presidency.

Agreements at the G7, G20 and OECD to end public international coal finance send a strong signal that the world economy is shifting to renewables. This could end over 40GW of coal across 20 countries, equivalent to over half of the UK’s electricity generating capacity.

Business and Energy Secretary, Kwasi Kwarteng said: “Today marks a milestone moment in our global efforts to tackle climate change as nations from all corners of the world unite in Glasgow to declare that coal has no part to play in our future power generation. Spearheaded by the UK’s COP26 Presidency, today’s ambitious commitments made by our international partners demonstrate that the end of coal is in sight. The world is moving in the right direction, standing ready to seal coal’s fate and embrace the environmental and economic benefits of building a future that is powered by clean energy.”

To meet the goals of the Paris Agreement to limit global temperature rises to 1.5 degrees, the global transition to clean power needs to progress four to six times faster than at present.

With coal being the single largest contributor to climate change, phasing it out and delivering a rapid, inclusive transition to clean energy is essential if we are to keep 1.5 degrees alive.

Twenty-eight new members on Wednesday signed up to the world’s largest alliance on phasing out coal, the Powering Past Coal Alliance (PPCA) launched and co-chaired by the UK.

Chile, Singapore and Durban joined over 150 countries, sub-nationals and businesses, including finance partners NatWest, Lloyds Banking, HSBC and Export Development Canada. This accounts for more than $17 trillion assets now committed to PPCA coal phase-out goals.

There has also been a 76 per cent cut in the number of new coal plants planned globally over the last six years which means the cancellation of 1,000GW of new coal plants since the Paris Agreement, roughly equivalent to around 10 times the UK’s total peak generating capacity.

Responding to the UK government securing coalition with commitments to phase out coal power, Jonathan Sims, Carbon Tracker Senior Analyst, said: “Fresh country pledges to end the construction of new coal plants, which is vital if long-term climate goals are to be achievable, send a strong signal that coal is out for the count.”

Dave Jones, Ember’s global lead, said: “Today’s commitments will help to shift whole continents on their journey to phase out coal. This is such a big moment because by far the biggest gap in ambition to get to 1.5 degrees is a rapid collapse in coal generation i.e. for major economies to phase-out coal power by 2030 and the rest of the world by 2040.”

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