Coal, often declared a relic of the past, is roaring back to life with new mine approvals and record consumption.
According to Oil Price.com, despite global calls for a ban, the U.S. Department of the Interior’s recent approval of a new coal mine in Tennessee mirrors a broader trend of persistent coal reliance, with massive capacity expansions planned worldwide amid record-high demand.
This isn’t a fluke—it’s economics at work. Coal remains a cheap, reliable energy source, especially when renewables falter.
Last year, global coal consumption reached an all-time high, driven by powerhouses like China, India, and other Asian nations. China alone consumed 56% of the world’s coal while simultaneously leading in wind and solar capacity.
Yet, even with green investments, coal’s grip tightens—global operating coal power capacity hit a record 2,175 GW by the end of last year. An additional 611 GW is under development, signaling no slowdown.
Plans for 850 new coal mines, including expansions and recommissioning, are in motion, with capacity under development totaling 2.27 billion tons annually—half of it in China.
Renewables aren’t always the answer, as Europe learned in the first half of this year with a 9% drop in wind power generation. Coal generation in the region spiked by 2%, the highest in two years, while gas-fired generation surged 19% to a three-year peak.
Germany, a supposed green leader, faced a coal consumption spike early this year due to an extended wind drought. When the wind doesn’t blow, coal steps in.
Even in the U.S., coal consumption jumped 20% in the first half of this year, hitting a two-year high despite record output from wind, solar, and hydro.
While global coal mine capacity growth last year was the slowest since 2014 at 105 million tons—a 46% drop from the prior year—the trend isn’t a reversal. Since the Paris Agreement in 2015, the world has added 259 GW of operating coal power capacity, a 13% increase since that benchmark year.
The numbers don’t lie: coal isn’t dying, it’s adapting. Investors should note this resilience when eyeing energy markets. For wealth-builders, this signals opportunity—coal stocks or energy ETFs with exposure to traditional fuels could be undervalued amid green hype. Don’t bet against reality; reliability still pays.
Looking ahead, coal demand is poised to grow further, fueled by AI-driven surges in electricity needs. Data centers don’t run on good intentions—they need power, and coal is often the fallback.
For those skeptical of government overreach in energy policy, this is a reminder: markets, not mandates, dictate energy choices. The UN’s call to cut coal production by 75% from 2020 levels by 2030 to limit warming to 1.5 degrees Celsius feels like a pipe dream against these hard numbers.
Stay sharp—monitor energy policies and invest in diversified portfolios that balance green innovation with traditional energy’s stubborn staying power. Coal isn’t dead; it’s just catching its breath, and your financial strategy should account for it.