As the effects of the COVID-19 pandemic continue to unravel, Lux Research Senior Analyst Yuan-Sheng Yu says coal is no longer economically competitive in the United States:
“ 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 U.S. coal industry for good. While natural gas and renewables are key to decarbonization, the pandemic has brought the well-known fact to the public light: Coal is no longer economically competitive in the U.S,” said Yuan-Sheng.
The analyst further said it is becoming clear that COVID-19 will lead to a shake-up of the energy landscape and catalyze the energy transition, with investors eyeing new energy sector plays as we emerge from the pandemic.
