Powering the upcoming electrification wave with clean energy rather than coal delivers a fourfold advantage: lower electricity costs, greater energy security, a more flexible grid, and higher emission reductions. That is the central message of a new briefing – Electrification: why clean power delivers where coal cannot – published today by the Powering Past Coal Alliance at the Global Energy Transition and Electrification Summit at Mansion House, during London Climate Action Week.
The world is entering a period of rapid electrification, yet the question of what will power it is still open. Coal remains one the the world’s largest sources of power generation – accounting for 33% of electricity generation and 73% of power sector emissions – and it still provides the majority of electricity in precisely the countries where electrification is growing fastest.
The briefing shows that powering the electrification wave with clean energy rather than coal brings lower long-run energy costs. This is because renewables paired with battery storage offer cheaper power than even the most efficient new coal plants globally, and, in most parts of the world, are also becoming increasingly cheaper to run than existing coal plants.
But the case for moving away from coal goes beyond cost. Many countries especially in the Asia Pacific region rely significantly or entirely on imported coal, leaving their electricity systems fully exposed to the kind of price shocks now rippling through global markets. Coal-heavy power systems are also structurally ill-suited to the demands of an electrified economy, as they are slow to ramp, costly to cycle, and cannot provide the flexibility that modern grids need.
Julie Dabrusin, Minister of the Environment, Climate Change and Nature, Canada, said:
“The transition away from coal will bring more stable energy markets, new economic opportunities and greater resilience. In Canada and around the world, modernized power systems will continue to play a key role in reducing emissions, boosting economic prosperity and reinforcing energy security while ensuring industries remain competitive. To expand these systems, we will need to overcome challenges together. The Powering Past Coal Alliance is a coalition which focuses on action and has spent a decade developing solutions. Now is the time to come together to accelerate implementation and fully realize the benefits of electrification.”
Many countries are taking action to accelerate the transition from coal to clean and the briefing includes two case studies: about Morocco and Spain, that illustrate the benefits that this can bring in the context of rapid electrification. Morocco’s coal import bill tripled in just two years – from $633 million in 2020 to $2.06 billion in 2022 – exposing the energy security risk that is now driving the country’s shift from coal to clean power as it electrifies. Spain’s shift away from coal toward solar and wind has enabled the country to move from one of Europe’s more expensive power markets to one of its cheapest in just six years, building a stronger foundation for the electrification wave ahead.
The briefing puts forward two recommendations for how to expand the benefits of the coal-to-clean transition to all parts of the world:
- governments and system planners should bring electrification, clean build-out and coal transition scenarios together into a single costed pathway;
- the international community should make addressing coal lock-in a central element of the global Roadmap for the Transition away from Fossil Fuels, ensuring every country seeking to accelerate its transition can access the partnerships and finance to do so, with COP31 as the moment to deliver it.
Ana Toni, CEO, COP30, said:
“The energy crisis, intensified by the invasion of Iran, has given even more importance to the call to action launched by President Lula at COP30: we must overcome our collective dependence on fossil fuels. As the analysis launched today by the Powering Past Coal Alliance shows, transitioning away from fossil fuels means strengthening economies, reducing emissions, improving national security, and lowering energy costs. To help planning this transformation, the COP30 Presidency Roadmap will outline pathways from the perspectives of demand, supply, and economics to accelerate implementation, highlighting that a just, orderly and equitable transition will require governments, businesses, investors, and civil society to work together to keep 1.5°C within reach.”
Jochen Flasbarth, State Secretary for the Environment, Climate Action, Nature Conservation and Nuclear Safety of Germany, said:
“The direction is clear: electrifying our economies with renewable energy now gives us a unique opportunity to unlock low-cost, domestic power that makes our economies more resilient, reduces air pollution and emissions and provides jobs for the future. Sound planning, international coordination and targeted support can prepare coal-dependent regions to avoid being left behind and fully benefit from the electrification wave.”
Benoît Faraco, Climate Ambassador, France, said:
“As a leading country on electrification, France knows the potential it holds: this is one of our most powerful tools to accelerate the transitioning away from fossil fuels, build our energy sovereignty, meet our climate target, and bring value and jobs to our communities. Yet, the impact of electrification will depend on the energy that powers it. This brief makes clear what developing countries stand to gain by choosing clean energy: lower long-run energy costs, greater energy security, more resilient grids, and far deeper emission cuts.”
Andrew Lever, Director of Energy Transitions, Carbon Trust, said:
“Electrification is accelerating globally, but how we power it will determine whether we unlock its full economic, health, and climate benefits. This analysis shows that clean electricity systems can be built affordably, achieve greater energy security, higher overall efficiency and with the flexibility needed for modern economies. Coal risks locking countries into higher and volatile traded fuel prices. The priority now is to align electrification and the transition away from coal together to deliver the benefits of clean electrification at scale.”
Bruce Douglas, CEO, Global Renewables Alliance, said:
“We are entering the age of electricity. Across the world, transport, industry, cooling and infrastructure are moving onto the grid, and electricity is becoming the foundation of economic growth.
The question now is what will power that growth. Countries that meet rising demand with renewable energy will benefit from lower costs, stronger energy security and more competitive economies. Those that remain tied to coal will lock themselves into a more expensive and less flexible future. Electrification and the transition away from coal are not separate challenges, they are two sides of the same opportunity.”
Matt Webb, Associate Director for Global Clean Power Diplomacy, E3G, said:
“Renewable-based electrification is fast becoming a defining response to the largest global fossil fuel energy crisis we have seen – and to surging demand for data centres, cooling and electric vehicles. It is imperative that we redouble our pace and efforts to clean up global power system by accelerating the phase out of dirty coal power generation. This report underlines the clear benefits of doing so and offers practical recommendations to support countries through a rapid and secure transition from coal power to clean energy.”
ENDS
Media contact: Anna Drazkiewicz, PPCA Communications Lead, 00 32 487 32 45 62, anna.drazkiewicz@poweringpastcoal.org
The briefing has been published by the Powering Past Coal Alliance. Global climate consultancy, The Carbon Trust, independently conducted the research for the briefing.
About the Powering Past Coal Alliance The Powering Past Coal Alliance brings together over 180 national and subnational governments, financial institutions and businesses committed to accelerating the transition away from coal power. It is co-chaired by the United Kingdom and Canada.
About Carbon Trust The Carbon Trust is a leading global organisation on clean energy and sustainability, helping businesses, governments and organisations worldwide decarbonise and accelerate to Net Zero.
