FRANKFURT, July 11 German hard coal consumption
for power generation was down by 11 percent year-on-year in the
first quarter of 2014 as the use of coal in electricity
production gave way to higher renewable power production, coal
importers lobby VDKI said on Friday.
Healthy steel industry demand, however, helped to boost
"The increasing feed-in of power from renewable energy,
namely from photovoltaics, could have a further dampening effect
on coal demand especially in the summer months," VDKI said in a
Production of power from hard coal-fired generation plants
was down 17 percent in January-March at 30 terawatt hours (TWh),
compared with a year earlier, it said.
Input of hard coal into power generation in the quarter fell
to 14.7 million tonnes of hard coal equivalent compared with
16.5 million a year earlier, VDKI said, citing official data.
Coal burn and imports are often converted into hard coal
equivalent depending on the coal's calorific value, to achieve
Many coal-to-power plants cannot run profitably because they
have to reduce run-time in favour of green energy, which under
Germany's legal provisions for the sector is given priority
access to power grids reaching consumers.
Yet despite the weaker trend in power, overall imports of
steam coal and coke rose by 3 percent year-on-year to nearly 14
million tonnes, VDKI said. The increase resulted from higher
demand from the steel industry, another key coal consumer.
A breakdown of coal origins showed that Russia was the
biggest supplier with 23 percent of the total, the importers
group said. Number two was the United States, narrowly behind
with a rounded share of 23 percent, then Colombia with 14
percent and South Africa with 9 percent.
(Reporting by Vera Eckert; Editing by Mark Potter)