Renewables are stealing space over the coal in Australia, and the international outlook has stated the lowered its demand. The International Coal Transitions project has released its findings which explains scenarios and detailed case studies in the countries such as China, South Africa, Australia, India Poland, and Germany.
The research is based on the contribution of the Australian National University and the University of Melbourne estimates the coal exports and consumption in the Hazelwood power station closure. Coal production in Australia is likely to be on a declining trajectory. In these countries, among all coking coal is mined in Australia is exported and 70% of steam coal is used for electricity generation.
Still, there is a question mark on the future of steam coal exports. Based on the technological, economic, and political, the uptake of coal is falling from past few years. The report expects that consumption will fall by the early 2020s.
The countries such as China, South Africa, Australia, India Poland, and Germany are the most industrializing countries, but they are much concerned about air pollution and availability of renewable sources of energy and power to be used as alternatives and their cost-competitive with coal.
Most coal in Australia is used for energy generation. This is just a start of the fundamental change in the system and where the coal power will be replaced by renewable energy sources. This change is leading to intensifying the competition between the coal and renewable energy sources among the existing coal-fired power station.
Wholesale prices have increased, but the replacement will take time. Australia is a well-established country for the use of renewable energy.