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Why is the demand for coal in the world always increasing?

Why is the demand for coal in the world always increasing?
The coal mining industry appeared relatively early and developed from the second half of the nineteenth century. Coal mining output varies widely between periods, between regions and countries, but in general, there is a tendency to increase in absolute numbers. In the past 50 years, the average growth rate was 5.4% / year, the highest rate in the 1950s and 1980s was 7% / year. Since the beginning of the 1990s, the increase has been reduced to only 1.5% per year.
Although the exploitation and use of coal can cause adverse environmental impacts (soil, water, air ...), coal demand is not reduced. So why does demand for coal always increase? Will coal demand increase or decrease in the coming years? Let Lec Group learn about the issues surrounding this topic through the following article!
Why does world coal demand tend to increase?
  • The main reason: Coal is the fuel that produces 38% of electricity worldwide. Increasing demand for electricity naturally increases coal consumption. In the article "How to explain the trend of more used coal in the world?" posted on The Conversation website, economist Carine Sebi of the Management University of Grenoble, France (GEM) said two-thirds of coal is used to produce electricity, the rest is for industry, mainly metallurgy industry.
  • Carine Sebi, an expert with data sources from energy-intensive research agency Enerdata, said that in the period of 2010-2017, coal consumption for electricity production increased in direct proportion to overall electricity consumption. , respectively 2.8% / year and 3% / year.

Which country uses the most coal?
  • If in France, only 1.8% of electricity is produced from coal-fired power plants, and in the Middle East only about 3%, in many countries, this proportion is still very large, for example Poland (78%), India (75%), China (68%), Indonesia (58%), Philippines (50%). This figure in Vietnam is 34%.
  • China is the country with the highest demand for coal. Currently, China consumes about a quarter of all the coal mined worldwide. Clean energy sources are not enough to meet demand, so China still relies heavily on thermal power. China's electricity demand has increased by an average of 7% per year since 2005. In terms of quantity, China uses the most coal in the world to serve the electricity industry.
What is the strongest increase in coal consumption in the world?
  • Currently, there are two contradictory trends in the world. While some countries have reduced their share of thermoelectricity, some others have boosted production of coal-based electricity. The second group of countries is also often the largest coal mining country. India, the share of thermal power has increased by 7% between 2010 and 2017. The increase in Indonesia is 18%, the Philippines is 15%. Vietnam is also a country with a strong increase in thermoelectricity (+ 14%). In Japan, after the Fukushima disaster, many nuclear power plants were closed. In this context, Japan must rely heavily on coal to produce electricity. The proportion of coal-fired thermal power in this country therefore increased strongly in the period 2011-2015. The Philippines and Vietnam are two of the countries with large coal reserves and have taken advantage of this fuel to produce electricity, avoiding energy dependence.
  • In contrast, the share of coal-fired thermal power declined sharply in the US (-15%), Europe (-10%). China, even though it is still the world's largest coal consumer to produce electricity, has also implemented energy and environmental policies to limit coal use to reduce environmental pollution. therefore, the proportion of coal thermal power is also reduced by 10%.

Are there many new countries developing coal thermal power?
  • Surprisingly, according to economist Carine Sebi, in the context of the world fighting against climate change, many countries set a goal to completely shut down coal-fired power plants (France - 2022, England). and Italy - 2025, Netherlands - 2030 and Germany - 2035), now there are about 20 more countries, including 9 African countries, 3 Central American countries, the Middle East and 2 Asian countries is heading towards coal. From now to 2025, more than 70 coal-fired power plants in these countries will be put into operation.
  • Another point worth mentioning is that most of these countries do not even have coal resources, except Bangladesh and Tanzania. Coal-fired thermal power projects in these countries are largely funded by China and India, because more and more large international financial institutions have not supported thermo-power projects recently. coal.

Will coal demand increase or decrease in the coming years?
  • According to Enerdata Energy Research's forecast agency Enerfuture announced in January 2019 and cited by Carine Sebi, from now until 2040, the proportion of coal-fired thermal power in the power structure above the world will only drop by 10 points, to 27.6%. Middle East, Latin America and Europe will be the three regions with the lowest proportion of coal-fired power in the world, respectively 1.9%, 4% and 7.4%. India (54.2%), Indonesia (44.3%) and China (38.7%) will still be the three countries with the highest proportion of coal-fired power due to abundant coal reserves and many economic profit. But in terms of the reduction, China will take the lead (-24.6%).
  • In the short and medium term, the demand for electricity in the world continues to increase, especially because the demand in emerging countries has increased sharply, and there will be more fields of electricity use, especially electric car According to a report by the International Energy Agency published on May 30, 2018, from the end of 2014 to the end of 2017, the number of electric cars in the world has increased 5 times. By the end of 2017, there are about 3.1 million electric cars in the world, nearly two-thirds of them are 100% electric vehicles. According to the International Energy Agency, from now to 2030, the number of electric cars will increase to 125-220 million units.
  • In 2017, more than 50% of electric cars sold are in China. But compared to other countries, while the number of electric cars only accounts for 2.2% of all cars sold in China, in Northern Europe, this ratio is much higher (Norway 39.2% , Island 11.7% and Sweden 6.3%. In France, compared to 2016, the number of cars sold increased by 18%, while in Germany and Japan, this number doubled.
  • Currently, many governments have proposed plans to ban gasoline and diesel vehicles, completely shifted to electric cars: Norway - 2025, the Netherlands - 2030, Scotland - 2032, France and Britain - 2040. Electric cars will increase demand for electricity and coal demand, so it is difficult to quickly reduce.

Currently Lec Group is the leading coal supplier in Vietnam. Coal source that Lec brought about is rigorous quality inspection and careful calculation so that when it comes to partners, it is a source of quality products, the most competitive price. Contact Lec Group today for better advice!

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LEC Group tuyển dụng nhiều vị trí Quý 2/2022


LEC Group tuyển dụng nhiều vị trí



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