Coal power a waste as green gets cheaper

Coal power developers risk wasting hundreds of billions of pounds as new renewables are now cheaper than new coal plants around the world, a report warns.

In all major markets from the US to Europe, China, India and Australia, it already costs less to generate power from installing new wind or solar farms than new coal plants, the latest study from think tank Carbon Tracker found.

And it could be cheaper to generate electricity by building new renewable facilities than to run existing coal-fired power stations in all markets by 2030, the researchers predict.

Already, four fifths (82%) of the UK’S remaining 12 gigawatt of operating coal power costs more than new renewables, Carbon Tracker said.

In the UK, a carbon price floor, falling demand and subsidies for renewables have helped push most coal off the system ahead of a phase-out date which was recently moved forward to October 2024.

Across the world, some 60% of the existing coal plants are generating electricity at a higher cost than the cost of power produced from building and running new renewable schemes, the latest report from the organisation said.

Carbon Tracker is urging governments and investors to cancel the vast amount of coal projects announced, permitted or under construction around the world – or waste 638 billion US dollars (£495 billion) in capital investment.

Matt Gray, Carbon Tracker co-head of power and utilities and co-author of the report, said: “Renewables are out-competing coal around the world and proposed coal investments risk becoming stranded assets which could lock in high-cost coal power for decades.

“It makes economic sense for governments to cancel new coal projects immediately and progressively phase out existing plants.”

Limiting global warming to 1.5C, to avoid the worst impacts of climate change, means global coal use to generate electricity will have to fall by 80% from 2010 to 2030 – and effectively one coal plant has to retire every day until 2040, the report said.

Almost 500 gigawatts of new coal power is planned or under construction, but Carbon Tracker warns governments and investors may never recoup their outlay.