The Southeast Asia Energy Outlook Report from the IEA signals the continued uptake of new high efficiency, low emission (HELE) coal-fired electricity generation, he said.
“This is good news for demand for high quality Australian coal which is most suited for use in modern, cleaner, generating plant,” he said. “Importantly increasing investment in these plants can reduce emissions growth without compromising much needed human and economic development objectives.”
Coal is Australia's second largest export earner, contributing around $40 billion per year to the national economy, according to Evans.
“Total energy demand in Southeast Asia is forecast to grow by a massive 80% by 2040 with coal expected to supply 40% of the growth in electricity generation,” he said.
“The share of coal in electricity generation in the Southeast Asia region is expected to rise from 32% to 50%.
“The demand for coal in the region is based on it being an affordable and accessible source of energy that provides reliable base load power. In particular, the ramp up in coal fired generation in the period to 2040 is due to the demand for widespread and rapid electrification.”
The IEA Report notes that based on the strong demand for coal in Southeast Asia, there is significant opportunity for greater investment in HELE plants that have the ability to reduce emissions by up to 40%.
World Coal Association CEO Brendan Sporton said: “As we approach COP21, it’s essential that we recognise the reality of growing coal use in many regions of the world and work to ensure coal is used as cleanly as possible through the use of low emission coal technologies.
This report is a reminder that for many regions of the world, coal will continue to be the dominant source of electricity for years to come, and underscores how vital it is for us to fast-track the deployment of HELE coal technologies across the region.
“HELE coal technologies available today can make huge improvements in the environmental performance of coal-fired power stations. Increasing the average efficiency of the global coal fleet from 33% to 40% would save us two gigatonnes of CO2, which is equivalent to India’s annual CO2 emissions.
“In fact, earlier this year the WCA launched a Platform to Accelerate Coal Efficiency (PACE) to work with the global community to raise efficiency levels across the global coal fleet. We will be working with the IEA to support the deployment of high efficiency low emissions coal throughout the region.”
Evans said it is now important that the full range of funding mechanism are available to foster their uptake this will including from private sources and from the new and existing international financial institutions based in the Asian sphere.
“The World Bank is clearly out of step and needs to review its decision to apply restrictions on lending for coal-fired plants as they are deterring greater investment in this cleaner and more efficient technology,” Evans said.
“The fast emerging change in the energy demand landscape in the region makes this all the more urgent.
“Nevertheless, recent research undertaken by the IEA Clean Coal Centre found that there is 670 HELE generation units in operation across wider Asia and an additional 1,066 under construction or planned. That represents 24 times Australia's current coal-fired capacity.”
