Global coal demand for power generation is now expected to increase this year, according to the International Energy Agency, reversing an earlier outlook that suggested usage would level off. The updated view points to renewed pressure in global energy markets.
A key factor behind the shift is the war involving Iran, which has raised the cost of other fossil fuels. As competing energy sources become more expensive, coal has become a more economical option for electricity producers in some markets, even as many countries try to reduce reliance on it.
The change in forecast underlines how quickly geopolitical tensions can alter the energy picture. When fuel prices rise and supply concerns grow, utilities often put affordability and energy security ahead of longer-term transition goals, which can extend the role of coal-fired power.
The IEA’s latest assessment suggests that any plateau in coal use for electricity may be postponed for now. Instead of stabilizing, coal demand is set to climb as power systems respond to volatile fossil fuel costs and ongoing uncertainty across global energy markets.
