Investing.com - Global demand for coal is shifting from the U.S., according to a new report from the Energy Information Administration (EIA) of the U.S. Department of Energy.
In its medium-term coal market study for 2016, IEA demonstrates that global coal demand growth has slipped after more than a decade of 4% annual growth.
Demand this year is expected to be below 2013 levels, as consumption contracted for the first time in 2015 and reduced demand in the U.S. and China was not made up by increased growth in other markets.
China reported a coal use decline in all consuming sectors, including, but not limited to electricity, steel and cement-making.
Coal generation dropped due to a stagnant 0.5% electricity demand growth powered by the country’s energy diversification policy.
That policy expanded growth in hydro, nuclear, wind, solar, and natural gas power generation throughout the middle kingdom.
Coal consumption in the U.S. dropped due to low natural gas prices and coal plant retirements pushed by the Mercury Air Toxics Standards (MATS), the Obama administration's interpretation of federal air quality law.
During this past year, U.S. coal consumption declined 15%, the largest annual decline in recorded industry history.
Coal was an issue in the recent presidential election, with Donald Trump, now the president-elect, promising to help renew the coal industry's fortunes.