By Rizki Hidayah, Literature Student
Follow me: @rzkhdyh._
The United Kingdom officially ceased dependence on coal for electricity generation for the first time in a span of 142 years on Monday (30/9/2024). The country has closed down its last remaining coal-powered station, Ratcliffe-on-Soar. This historical decision has an immediate effect on global markets, with coal prices dropping more than 2%. On Tuesday (1/10/2024), the reference price of Newcastle was $141.65/tonne, which was 2.38% lower than the previous level.
The closure of Ratcliffe-on-Soar, which has been in service since 1967, is a significant milestone in the war against climate change in the UK. It also signifies a shift towards an advanced economy.
Quoted from CNBC News on Wednesday (2/10), Dave Jones, global insight director at Ember, said, "This decision really begins the process of ending coal by providing a clear direction for the industry." This makes Great Britain the first major economy to entirely phase out the use of coal, which is likely to have a significant effect on the global energy market dynamics.
The UK has had legally binding climate targets in place since 2008, and in 2015, it declared a plan to phase out the use of coal within the next decade. In 2010, renewable energy contributed just 7% of the UK’s electricity supply; however, by the first half of 2024, this figure had increased to more than 50%—a new record.
The closure of the UK's last power station resulted in a drop in global coal prices of more than 2%, reflecting a significant shift in the global energy market. For further information regarding current coal price trends, visit TRADING ECONOMICS.
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