Despite the EU’s efforts towards phasing out the dirtiest fuel from its power generation mix, the soaring prices of energy sources have caused countries to switch to coal in the post-pandemic period. The war in Ukraine has further jeopardized the energy markets, making coal the most desirable alternative for many member countries.
Europe had decreased its dependency on coal during the last decade before the impact of the pandemic. For comparison, in 2019, coal held a 13% share of primary energy consumption at the EU level while globally its share reached 27%. However, in October 2021, the price of natural gas reached its highest level in a decade due to a violently cold winter in Russia and high demand in Asian countries. The increasing prices of natural gas pushed countries to switch to coal consumption, increasing the dirtiest fuel’s share in the EU’s power generation mix. In EU member countries, electricity production from coal increased by 16% in 2021.
Fig.1. EU power generation mix
Source: Enerdata
According to Enerdata, after the Coronavirus outbreak, the phasing out of coal use in Europe has almost ceased compared to preceding years. In fact, data reveals that a 20% increase in coal power generation in 2021 has more than compensated for the decline in gas power generation to cover electricity demand. At the same time, solar and wind power generation has decelerated after the pandemic because of poor wind conditions.
Fig.2. EU power generation variation
Source: Enerdata
Since the beginning of 2022, the energy market has been shaken by the war in Ukraine. Amid the already soaring prices of energy and fears over the shut-down of supplies from Russia, coal has become the most reliable short–term solution for many countries. It is much easier to switch to coal power generation than construct wind or solar power stations. In many cases, energy production from coal is currently much cheaper than production from gas-fueled power stations despite Europe’s emissions-trading system requiring producers to pay for CO2 emissions.
While European countries have vowed to ban Russian coal, gas, and oil, the possible surge in coal consumption could occur because obtaining coal from countries other than Russia is still much cheaper than power generation from gas-fueled plants. Italy’s prime minister, Mario Draghi, has considered reopening the country’s coal plants to decrease dependency on Russian supply. Germany, a country with the highest level of coal consumption in Europe, is also considering re-opening coal plants. However, despite the growing levels of coal consumption, the EU’s climate chief, Frans Timmermans, believes that countries can switch to coal consumption as an alternative and still meet the target to decrease coal consumption by 55% by 2030 compared to 1990 levels.
See also: Will Russia’s invasion of Ukraine fast-track the energy transition? | Experts’ Opinions
However, the growing level of coal consumption in Europe is believed to be a short-term situation as member countries increasingly invest in renewable power generation. The future of fuel is expected to depend largely on countries such as India and China, as together both consumed 60% of coal globally in 2021.
