Yuan-Sheng Yu, senior analyst at research and advisory firm Lux Research, the US technology company, Yuan-Sheng Yu, has commented on the shift of energy and coal market conditions in the US amid the Covid-19 pandemic.
He says: “According to the EIA, renewable energy will surpass coal in the US electricity mix this year for the first time in history. Coal has been on the decline for nearly two decades and was replaced by natural gas as the primary source of electricity in 2016, but a 16-year low in electricity demand brought on by Covid-19 will likely shutter the US coal industry for good.
“While natural gas and renewables are key to decarbonisation, the pandemic has brought the well-known fact to the public light: coal is no longer economically competitive in the US. It is becoming clear that Covid-19 will lead to a shake-up of the energy landscape and catalyse the energy transition, with investors eyeing new energy sector plays as we emerge from the pandemic.”