Coal-fired power generation is set to increase in 2026, driven by supply difficulties and soaring natural gas prices linked to the war in the Middle East, AFP reports citing the International Energy Agency (IEA).
The conflict in the Middle East, pitting the United States against Iran, has led to regular blockages of the Strait of Hormuz since March 2026, through which 20 per cent of liquefied natural gas transits, pushing some economies back toward coal.
As a result, “global coal-fired generation is expected to increase by 1.4pc in 2026, after remaining roughly constant in 2025,” the IEA writes in a new report.
The increased use of coal-fired power plants is also explained by a surge in energy prices in 2026.
Up 30pc compared with the first half of 2025, they are “at their highest level since the energy crisis of 2022 and 2023,” which was triggered by the war in Ukraine, the IEA says.
