More than 55 percent
Coal imports to Europe are increasing rapidly
2/3/2022 2:59 p.m
The use of coal in power plants had actually been reduced in Germany in recent years. But now the demand for coal is growing in Europe, and imports are skyrocketing compared to the same month last year. The reason for this also lies in Eastern Europe.
Due to the rapid rise in gas prices, also in the course of the Ukraine crisis, the import of coal to Europe is increasing significantly. According to calculations by the ship broker Braemar ACM, imports rose by more than 55 percent in January compared to the same month last year.
The main reason is that coal has become cheaper compared to gas. As a result, more coal-fired power plants produce electricity while the use of gas-fired power plants is reduced. The International Energy Agency (IEA) assumes that gas consumption in Europe will fall by 4.5 percent this year. The comparatively mild winter so far could also play a role here.
The use of coal in power plants had actually reduced in Germany in recent years. The expansion of renewable energies and also the increase in the price of CO2 rights had an impact. Coal-fired power plants need about twice as many rights as gas plants.
However, the rapid increase in the price of gas more than makes up for this. In addition, the wind turbines in particular produced less energy last year, as there was often a lull. In 2021, this in turn had a negative impact on the climate balance; according to initial studies, CO2 emissions in Germany increased by 4.5 percent compared to 2020.
According to the Braemar experts, the growing demand for coal is now encountering a tight market, also due to fears of a complete halt to deliveries from Russia. Colombia and the USA could not deliver as desired. In the course of the energy transition, coal production in Europe, such as in the Czech Republic, has also been restricted. The prices for delivery in March have risen by around 80 percent compared to September.