The Silicon Review ^Asia

In the rapidly growing economies of Southeast Asia, coal is remaining to be a dominant fuel even amidst the global movement towards renewable energy sources. Jacqueline Tao, a research assistant at Wood Mackenzie (commodity consultancy) stated that the pessimistic approach surrounding the narrative of coal will lead to a slowdown of coal-fired capacity in Southeast Asian regions. It is predicted that the coal will see its decline after affordability issues and rising power demand that people will witness post-2030. The coal industry has received criticism from environmentalists for causing pollution but the demand for coal is still rising steadily.

According to Mackenzie Study, coal will continue to steadily grow and be a dominant fuel and its usage will reach its peak in 2027 before slowing down. Furthermore, the study showed that by 2040 coal will contribute to 36 percent of the energy mix in Southeast Asia. Due to the government’s commitment toward renewable and clean energy sources, banks are hesitant to continue coal project financing. It is anticipated that wind and solar power will contribute majorly to Southeast Asia’s energy mix by 2040. The total investment in power will reach 23 percent and it will account for more than $89 billion.