European coal-fired power production totaled 23.6 TWh in September, a notable rise of 9.26% compared with 21.6 TWh a month earlier, showed data from the dry bulk data provider DBX.

DBX said this rise in European coal-fired power generation, coupled with a marginal decrease in coal imports, has exerted upward pressure on spot API 2 coal prices compared to the preceding month.

In September, coal imports to terminals in Amsterdam, Rotterdam, and Antwerp dipped to 2.65 million tonnes, down from 2.7 million tonnes in August and 2.9 million tonnes in September of 2022.

While Europe is committed to phasing out coal-fired power generation to align with its climate objectives, there has been an extension of coal generation to ensure the security of energy supply due to elevated gas prices.

Germany, for instance, last week unveiled plans to prolong the operation of its coal-fired power stations during the upcoming winter season. This policy was initially adopted in response to energy disruptions stemming from the conflict in Ukraine.

In September 2022, coal-fired power plants contributed to 36.3% of the electricity supplied to the German grid, a significant increase from the 31.9% recorded in the third quarter of 2021.

According to the 2022 Coal Market report by the International Energy Agency, it is anticipated that coal production in Europe will not drop below 2022 levels until 2025.

The report highlights that Germany, with a capacity of 10 GW, stands out in terms of the scale of this reversal, leading to increased coal generation within the European Union, which is expected to persist at these elevated levels for an extended period.

(Writing by Alex Guo  Editing by Emma Yang)
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