China and India Both See Rare Slide in Coal Power Output, Report Finds

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(Bloomberg) — The world’s two largest users of coal power both reduced generation from the polluting fossil fuel last year for the first time in more than 50 years, according to a new report.

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China’s coal-fired generation fell 1.6% last year while India’s declined 3%, according to Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air writing for Carbon Brief. It’s the first time both countries have experienced a drop in the same year since 1973, when the world was in the throes of the Arab oil embargo.

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The dual declines came amid record-setting renewables expansion in each country. In China, a huge wave of new solar and wind power was able to meet a rapid rise in power consumption. In India, the fall in coal power was heavily aided by cooler weather and slower underlying demand. 

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It’s unclear yet whether the drops will mark a broader inflection point, or will end up as blips. China only needs to maintain its pace of renewables additions to force coal power into a long-term decline, Myllyvirta said, while India will need to accelerate its wind and solar build-out. Being able to do that will require massive investments in the power grid to accommodate more intermittent sources. 

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The drops in generation came even as both countries are expanding coal power capacity, increasing the risk that new plants aren’t run frequently and create financial distress for state-backed utilities. Already in January India has seen a surge in coal power generation due to rising winter demand and a dip in hydropower output.

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“While many challenges remain, the decline in their coal-power output marks a historic moment, which could help lead to a peak in global emissions,” Myllyvirta said. 

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On the Wire

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China’s December trade report is likely to show resilient, though slower, export growth, based on high-frequency data tracked by Bloomberg Economics.

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China’s battery storage infrastructure is likely to get a fast-track rollout amid the push to ease grid congestion and meet the formidable power requirements of AI data centers, said Bloomberg Intelligence.

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Vitol Group and Trafigura Group are in discussions with large Indian and Chinese refiners over potential sales of Venezuelan crude, days after the trading giants obtained a preliminary green light from the US government to market the oil.

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This Week’s Diary

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(All times Beijing)

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Tuesday, Jan. 13:

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Wednesday, Jan. 14:

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