A report published today by the Institute for Energy Economics and Financial Analysis's (IEEFA) envisages a bleak future for the coal industry, where global trade volumes decrease an average of 4% every year.
Economists have advised New South Wales the market for coal-fired power is in terminal decline and it must begin preparing for alternatives.
Three quarters of all Australian coal exports for the generation of electricity comes from New South Wales.
"While the Australian coal industry and its lobbyists continue to maintain that the nation's thermal coal export industry is booming on the back of record export revenues, the reality is very different," the report says.
The IEEFA report cites the “unprecedented decline” in the cost of renewable electricity generation and an increase in the number of renewable electricity projects coming up as key factors.
According to the report, the country's largest thermal coal export locations including Japan, China, South Korea and Taiwan had rolled out policies to cut thermal coal consumption as they pushed for electricity generation from renewable energy sources.
Recently, Indian mining giant Adani commented that funding issues had led it to scale back plans for its Carmichael coal mine in Queensland.
Read the article online at: https://www.worldcoal.com/coal/01112018/ieefa-nsw-coal-power-market-in-decline/