In a statement by Greg Evans, Executive Director – Coal, Minerals Council of Australia (MCA) – he notes the latest report from the International Energy Agency (IEA) “shows strong and continuing demand for coal in the Southeast Asia region. Looking outside the established north Asia markets, our closet neighbours in Southeast Asia will see coal playing a rapidly expanding role in the fuel mix. By 2040 it is expected coal will surpass oil to become the most consumed fuel in the region, and grow at 4.6% over the same period.
“Significantly the Southeast Asia Energy Outlook Report from the IEA signals the continued uptake of new high efficiency, low emission (HELE) coal-fired electricity generation.
“Total energy demand in Southeast Asia is forecast to grow by a massive 80% by 2040 with coal expected to supply 40% of the growth in electricity generation. The share of coal in electricity generation in the Southeast Asia region is expected to rise from 32 to 50%.
“The demand for coal in the region is based on it being an affordable and accessible source of energy that provides reliable base load power. In particular, the ramp up in coal fired generation in the period to 2040 is due to the demand for widespread and rapid electrification.
“The IEA report notes that based on the strong demand for coal in Southeast Asia, there is significant opportunity for greater investment in HELE plants that have the ability to reduce emissions by up to 40%.
“It is now important that the full range of funding mechanism are available to foster their uptake.” This will include funding from private sources and from the new and existing international financial institutions based in the Asian sphere.
He goes on to say that “the World Bank is clearly out of step and needs to review its decision to apply restrictions on lending for coal-fired plants as they are deterring greater investment in this cleaner and more efficient technology. The fast emerging change in the energy demand landscape in the region makes this all the more urgent.”
Nevertheless, recent research undertaken by the IEA Clean Coal Centre found that there are 670 HELE generation units in operation across wider Asia and an additional 1,066 under construction or planned. “That represents 24 times Australia’s current coal-fired capacity.
“This is good news for demand for high quality Australian coal which is most suited for use in modern, cleaner, generating plant. Importantly increasing investment in these plants can reduce emissions growth without compromising much needed human and economic development objectives. Coal is Australia’s second largest export earner, contributing around A$40 billion per year to the national economy.”