Coal prices climbed to around $145 per ton in early September, their highest level in eleven weeks, supported by strong global energy demand and ongoing supply concerns. This advance came even as China announced that solar power has become the country’s largest source of installed electricity capacity, surpassing coal-fired power for the first time as part of its broader shift toward renewable energy.
Despite this progress, coal remains the world’s dominant source of power generation, with output projected to reach nearly 11,000 TWh in 2026. Rapidly rising electricity demand is slowing the pace at which coal can be displaced by renewables. According to the IEA, coal is expected to remain the single largest source of power generation through 2030, with no alternative technology likely to match its contribution over that period.
At the same time, the protracted conflict in the Middle East has tightened global LNG supplies and pushed energy prices higher, further improving the outlook for coal demand.
