It said US “consumption is poised to increase by eight percent in 2025 amid a combination of higher natural gas prices and a slowdown in the retirement of coal plants due to policy support led by the federal government,” said the IEA.
That contrasts to an average drop of six percent per year over the past 15 years.
President Donald Trump in April signed measures to “turbocharge coal mining” in the United States and more than double electricity production to keep up with power-hungry artificial intelligence technology.
However the IEA said it still expects US coal demand to decline by six percent per year on average through 2030, as renewable power generation grows and coal plants are taken offline, albeit at a slower pace than previously expected.
Higher than forecast electricity demand or slower coal plant retirements could slow the decline in US coal use, as could the price of natural gas, another fuel used to generate electricity.
Globally, the IEA sees coal demand in 2030 easing by three percent compared with 2025, with strong growth in electricity use supporting coal use.
“But competition with other power sources is also set to intensify, with renewable capacity surging, nuclear expanding steadily, and a wave of liquefied natural gas (LNG) arriving on the market,” it said.
Keisuke Sadamori, the IEA’s director for energy markets and security, noted that coal’s share in power generation continues to decline.
“In 2013, it was 41 percent, and in 2025 we expect it to be around 34 percent,” he said. “And that’s the lowest in the IEA’s history of statistics.”
The Paris-based IEA advises its 32 energy-consuming member countries on energy policy and monitors market developments.
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