08.12.202507:39:08UTC+00Coal Rises as India Looks to Build Capacity

Coal prices have surged beyond $110 per ton, nearing their highest level in four months, following news that India intends to significantly expand its coal-fired power capacity, with plans to construct new plants through at least 2047. This strategic move supports Prime Minister Narendra Modi’s ambition to secure energy independence and transition India from a developing to a developed nation by that time. By 2047, India's total coal-fired capacity could reach 420 gigawatts, marking an 87% increase from current capacities. In a parallel development, China has also indicated its continued reliance on coal power for the foreseeable future, setting a target for peak demand by 2030 and reconsidering previously more aggressive phaseout strategies. This enduring dependence on coal is evident in both Asian economies and Europe, driven by unpredictable power supplies and the rising electricity demand, especially from data centers. Currently, China and India collectively account for over 60% of the world's coal consumption.