PHNOM PENH — In late September, protestors in Central Java, on Indonesia’s most populous island, stood outside a regional government office and vented their frustration at what they saw as inaction over complaints that the towering smokestacks of a nearby coal-fuelled power plant had been sputtering ash onto their farms. With “we need clean air” and “we are covered in coal dust,” among the jeremiads, the protests echoed another long-standing struggle – near Batang, also on Java. There, locals have fought for years against the imminent opening of a 2,000-megawatt coal-fired power plant, part of the government’s plans to expand the electricity grid by 35,000 megawatts to meet the energy demands of an economy growing at 5% a year. Such protests are likely to become more common across the region in the coming years, as urbanisation, industrialisation and increasing consumer spending in Southeast Asia’s growing economies spur a surge in energy demand. This in turn will likely prompt a trend-defying expansion of coal-fired power plants over the coming years even as most other regions lower their dependence on coal over environmental concerns.
KUALA LUMPUR — For environmentalists, coal is a bad word. But for some of Asia’s biggest economies, the same fuel that was the bedrock of the Industrial Revolution in Great Britain in the 19th century is key to economic development plans two centuries later. While China, the world’s biggest coal producer and consumer, is slowly cutting back on its use of coal for fuel, both Japan, a coal importer, and Indonesia, the world’s biggest coal exporter by weight, plan to expand their coal-fired supplies in the coming years. Other developing economies are turning to coal as they expand their electricity grids. Vietnam is likely to double coal consumption in the coming years, as will India — which recently overtook Japan as the world’s third-biggest oil importer and where roughly 250-300 million people do not have electricity. “China’s expected energy mix points to decreased use of coal, with the share of coal-fired power generation expected to fall to 61% by 2020 from the current 72%,” said Deepak Kannan, S&P Global Platts editor for thermal coal in Asia.