While coal’s share in the global energy mix declines, the demand for coal will concentrate in India and other southeast Asian countries through 2022, says International Energy Agency in a report. During the period, coal demand is set to go down in Europe, Canada, USA and China.
“Despite rapid growth in renewables deployment, coal use will continue to rise in India. With a growing fleet of coal power plants running at less than 60% of capacity and robust power demand growth, coal-fired generation is forecast to increase at nearly 4% per year through 2022,” says the report named Coal 2017, Analysis and Forecasts to 2022.
Apart from this a rise in steel consumption, housing, railways and steel-intensive industries such as shipbuilding, defense and vehicle manufacturing will fuel growth in demand of thermal coal.
However, thermal coal imports to India is set to come down significantly as compared with last year, says the report. Apart from the policy push to reduce the burden of imports, the government will depend on the performance of Coal India and Singareni to meet domestic demand.
Meanwhile, coking coal imports is expected to increase by 5% through the year 2022, said the report.