Barrow pledges new power infrastructure, including a 24-megawatt plant, to tackle The Gambia’s worsening electricity crisis.
Published On 9 Sep 20269 Sep 2026
Gambian President Adama Barrow has said the country will boost energy supplies by next month, hoping to quell violent protests over prolonged power outages as the premier stands for re-election.
Protesters burned tyres and built barricades blocking traffic, demanding that Barrow resign, in The Gambia’s capital, Banjul, and nearby cities on Monday and Tuesday.
Police used tear gas to disperse crowds who gathered in multiple locations, including near Barrow’s residence and the National Water and Electricity Corporation (NAWEC) headquarters, which supplies the country’s electricity.
Demonstrators burn tyres and block a road during a protest over the country’s ongoing electricity crisis and persistent power outages in Brusubi on September 8, 2026. [AFP]
Barrow declared the outages an emergency and a “national security issue” during a visit to a NAWEC power station. In a national address, he announced that the government would install a 24-megawatt generation machine by the end of October.
“I know that the fans have stopped turning, children work in the dark, mothers throw away stale food, and the heat is unbearable by day and by night,” Barrow said.
The rolling blackouts are taking place during the West African country’s hot season and have lasted up to 48 hours in some places.
The Gambian president also announced an additional 50-megawatt solar power plant that would begin construction soon.
NAWEC Managing Director Gallo said the prolonged electricity cuts were in part due to climate change and the US-Israel war on Iran. The electricity provider, in a statement released in August, also claimed that it was experiencing an “unforeseen surge” in demand due to high temperatures.
The blackouts come just months ahead of the December presidential election, in which Barrow is running for a third term.
Oil prices are rising to nearly a six-week high amid a wave of strikes between the United States and Iran in the Strait of Hormuz, through which roughly a fifth of the world’s oil supply travels during peacetime.
On Monday, Brent oil futures, the global benchmark, rose to hover around $97 a barrel — up 9 percent over the last five days and 19 percent over the last month. Monday’s market moves are approaching the highest point since July 24th, when prices topped $97.93.
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US West Texas Intermediate crude similarly rose to $92.27 a barrel, up 79 cents, also a near six-week high.
In recent days, strikes escalated in the Strait of Hormuz. The US hit three Iranian oil tankers on Saturday, while Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had struck three tankers and three US-linked vessels in other areas.
“This is a reflection of continued conflict and exchange of fire. The supply deficits globally are persisting, and there is little end to these shortages,” Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security (CNAS), told Al Jazeera.
On Monday, Saudi Aramco’s Jizan facilities were struck for the second time in the last month, according to reporting from the Financial Times that cited two people familiar with the matter.
“The fact that a Saudi refinery in Jizan was hit, possibly delaying its return to production, didn’t help,” Ziemba added.
Amid increased strikes, there’s less traffic in the Strait of Hormuz, with an average of 10 commodity ships crossing the vital chokepoint each day over the last 10 days, according to Kpler, a data analytics platform.
“Crude went back down to what the pre-war level was in early July. Then it increased again, and then it reduced again, and now it’s increasing again on this weekend’s exchange plus the Aramco attack,” Arif Gasilov, a partner at the Gasilov Group, an energy advisory firm, told Al Jazeera.
“I would say that you might eventually see an inflection point, depending on how long this keeps going on, where a ceasefire doesn’t move the market at all, maybe by just a dollar or two.”
US consumers pinched
US consumers are feeling the impact of heightened oil prices at the petrol pump. The average price for a gallon (3.78 litres) of petrol has jumped 7 cents over the course of a week, reaching $4.15 nationally on Monday, up from $4.08 this time a week ago, according to the American Automobile Association (AAA), which tracks daily petrol prices.
That’s up from $4.04 this time a month ago and $2.98 from February 28th, when the US and Israel first struck Iran, marking a 39 percent increase since the war began.
“US diesel prices have never been this high, and now the countdown starts for the trickle-down to everything consumers buy… record diesel will start funnelling down into the economy,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a post on the social media platform X.
Prices have continued to climb since, with average prices on Monday topping $5.90 per gallon.
“Markets are pricing in longer disruptions. It continues to be in product markets where the biggest disruptions lie, though, including diesel,” Ziemba added.
Those price gains are weighing on Americans, who have spent an average of $764.59 per household on fuel since the war began. That’s $418.82 more than usual, according to Brown University’s Watson School of International and Public Affairs.
Ahead of the US’s September 5-7 Labor Day weekend, the unofficial end of summer and a popular time for US travel, AAA forecasts showed a 20 percent increase in flight costs compared to the same weekend last year.
Ahead of the midterm elections, the economy is emerging as a key issue for US voters — and a potential warning sign for Republicans. Polls show voters souring on President Donald Trump’s handling of the economy, with his economic approval rating falling to a new low in a recent Financial Times poll. Just 17 percent of Americans approve of his handling of the economy.
An Economist/YouGov poll similarly found that 39 percent of Americans believe Democrats are doing a better job handling the economy, compared with 32 percent who said Republicans are.
China pressures
Southeast and East Asian markets rely more heavily on imports travelling through the Strait of Hormuz directly than the US, but Beijing has moved to insulate itself from the disruption by turning to domestic sources, including its strategic petroleum reserve (SPR).
“China has been managing this situation successfully since the beginning of the war. We know that China has many domestic resources, despite rising oil prices,” John Gong, an economics professor at the University of International Business and Economics, told Al Jazeera.
“China has been conserving its oil and gas consumption for quite some time now. China was prepared for these challenges,” Gong said.
He also stressed that China’s close relations with Russia give Beijing another source of supply, with Moscow able to provide nearly half of China’s daily oil needs.
China has also begun tapping into its SPR while reducing its reliance on imports, as Beijing accelerates a broader shift towards alternative energy sources and vehicles that require little or no oil to operate.
“We have national strategies focused on transitioning to clean energies like solar and green power,” Gong said. “When we look at the vehicles purchased in China, more than 50 percent of cars sold on the Chinese market are electric.”
Order declares a national emergency over an ‘unusual and extraordinary foreign threat’ to the grid.
Published On 27 Aug 202627 Aug 2026
United States President Donald Trump has declared a national emergency over what his administration describes as security risks linked to foreign-made equipment used in the US electricity grid.
Trump signed an executive order on Wednesday that restricts the purchase and installation of certain foreign-produced equipment used in the bulk-power system.
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The order cited an “unusual and extraordinary foreign threat” from foreign-made systems, saying they could create vulnerabilities for US national security.
The directive targets certain bulk-power system equipment as well as related software and digital capabilities that the Trump administration said could create cybersecurity or operational risks.
The Department of Energy has 120 days to publish formal rules implementing the policy. In the meantime, experts are watching utility companies, which face the enormous task of compiling an inventory list of equipment flagged by the Trump administration.
“Blocking new purchases is the easy part. Knowing what’s already running is where the real work starts,” John Bruggeman, virtual chief information security officer of the telecommunications company CBTS, told Al Jazeera. “Utilities running foreign-sourced grid equipment … have a live compliance clock starting today.”
The move is the latest effort by the White House to address potential foreign security threats against the grid. Last year, US experts reported finding undisclosed communication devices in some Chinese solar power inverters. In July, the Federal Communications Commission banned all new foreign-made power inverters designed with remote communication capabilities and operating within the electric utility grid.
Still, the order does not prohibit all foreign-made equipment used in the US electricity system. US Energy Secretary Chris Wright has been directed to establish conditions for the continued use and operation of affected equipment.
“The executive order establishes the authority to act,” Michael Centrella at the cybersecurity company SecurityScorecard, told Al Jazeera. “The difficult next step will be giving operators scalable, independent visibility into which assets and vendor relationships present the greatest risk without disrupting the reliability of the power system.”
Naivasha, Kenya – For communities living around Naivasha, water is not an abstract resource. It sustains families, livestock, farms and schools.
That reality has taken on new significance after plans for a major Microsoft-G42 data centre in Olkaria, near Lake Naivasha, stalled in May 2026 over concerns about available power capacity.
Microsoft and United Arab Emirates-based artificial intelligence company G42 announced the project in 2024 as part of a $1bn digital investment package for Kenya. The proposed facility was to run on geothermal energy and eventually scale to as much as 1 gigawatt of capacity.
The uncertainty has also prompted questions about what another major industrial user could mean for water in a region where residents already report shortages.
Microsoft and G42 said the proposed data centre campus would run entirely on renewable geothermal energy and incorporate water conservation technology. The companies did not disclose a project-specific water consumption figure in their 2024 announcement.
Kenya Electricity Generating Company (KenGen) communications director Frank David Ochieng told Al Jazeera that the data centre remains at the design stage and that he could not comment further until the project is ready to proceed.
For residents like Musa Olorkedienye, who spoke to Al Jazeera, water scarcity is already a daily concern. He says communities around Olkaria have seen changes in access to water, including the loss of reliable piped supplies that residents previously received from KenGen.
“Currently, we are relying on water vendors to get water, our animals are walking for kilometres, and we fear things could get worse as demand for water rises,” Olorkedienye says.
Pastoralist Isaac Leshishi, who also spoke to Al Jazeera, says increasingly harsh weather is adding to the pressure.
Why Olkaria?
The choice of Olkaria was closely tied to energy. The area is home to Kenya’s major geothermal operations, making it an attractive location for a power-intensive facility.
River Malewa, a major tributary of Lake Naivasha, in Kenya [Hafsa Abdiwahab Sheikh/Al Jazeera]
KenGen operates the Olkaria geothermal complex, while Microsoft and G42 planned to power the proposed data centre entirely with geothermal energy.
A lake under pressure
Naivasha is a freshwater lake in Kenya’s Rift Valley whose catchment supports agriculture, tourism, livestock and domestic water use. Its basin also hosts geothermal development and other economic activity.
Grace Kimani, a patrol leader with Lake Naivasha and Oloiden, told Al Jazeera that the reservoir is under growing pressure from population growth, agriculture, water abstraction, climate variability, pollution and ecosystem degradation.
“The planned Microsoft-G42 data centre in Olkaria could bring jobs and investment, but its water demand raises concerns about adding pressure to already competing needs, particularly during dry periods,” she said.
Kimani said there is limited public information about the project’s expected water demand, source and cooling technology. She said transparency and an assessment of its cumulative impact on water resources would be important.
She also called for water-efficient or water-free cooling, water recycling and the use of treated wastewater, as well as sustainable abstraction limits and community involvement in monitoring.
Kamere landing beach has been flooded by rising water levels in Lake Naivasha, Kenya [Hafsa Abdiwahab Sheikh/Al Jazeera]
Silas Wanjala of the Lake Naivasha Riparian Association, who spoke to Al Jazeera, said the region is heavily dependent on groundwater and that declining water flows are adding to the pressure.
“These industries, especially EcoCloud, which deal with data, will consume a lot of water at a time when rivers are drying, and demand for water is on the rise,” Wanjala said.
Olkaria EcoCloud Data Centre is a local partner in the G42-led development. In 2024, the Kenya News Agency reported that G42, Microsoft and EcoCloud signed a letter of intent for the wider data-centre initiative, with EcoCloud described as a local partner that had previously signed a memorandum of understanding with G42.
Wanjala points to past fluctuations in Lake Naivasha as a warning.
“This lake in 2010 nearly dried up due to over-abstraction, and this could be repeated due to high demand for water by these investors in Olkaria,” he says.
His concern comes against a wider backdrop of water scarcity in Kenya. The Food and Agriculture Organization (FAO) of the United Nations says Kenya has about 527 cubic metres (527,000 litres) of freshwater available per person, below the 1,000-cubic-metre threshold for water scarcity, and estimates availability could fall to about 475 cubic metres per person by 2030.
The figures do not show what effect the proposed data centre would have on Lake Naivasha. They provide context, however, for why the prospect of another major water user is drawing scrutiny in a region where demand is already high.
How much water would it use?
The amount of water the proposed Microsoft-G42 facility itself would require remains unclear.
The project announcement provides no projected consumption figure.
Existing industrial use offers some context.
A KenGen environmental and social impact assessment records that 195,165 cubic metres of water were abstracted from Lake Naivasha in July 2023 for domestic and commercial uses at Olkaria and for operations and domestic use at Eburru.
Of that total, 153,918 cubic metres were used for commercial operations at Olkaria. The assessment records the abstraction as within Water Resources Authority (WRA) permitted levels.
Those figures relate to existing KenGen operations, not the proposed data centre.
For farmer Eskimos Kobia, who spoke to Al Jazeera, the potential competition extends beyond households and livestock. He says farmers, pastoralists, schools and investors will all face greater pressure as demand increases.
Kimani said climate variability has also led to fluctuations in lake levels, with periods of flooding followed by prolonged dry conditions.
“Water quality is affected by agricultural run-off, untreated wastewater in some areas and invasive species,” she says.
Investment versus local concerns
Not everyone in Naivasha opposes the investment.
Absolom Mukhuusi of the Naivasha Professional Association, who spoke to Al Jazeera, says the technology sector could bring jobs, infrastructure and new businesses to the area. But he says economic benefits should not come at the expense of local communities.
The Wildlife Research and Training Institute wetland research centre has been flooded by rising water levels in Lake Naivasha [Hafsa Abdiwahab Sheikh/Al Jazeera]
“Even as we welcome the investors, our biggest fear is what happens to our water bodies and communities as water is diverted to Olkaria for the heavy users,” he says.
Could technology help?
Geologist Kenyatta Otieno, who spoke to Al Jazeera, sees another potential benefit.
He recalls the pressure large flower farms once placed on the lake’s ecosystem, saying many have since left or scaled back their operations.
Otieno says the proposed centre would have included a resource centre to monitor lake levels and weather patterns. Such monitoring, he says, could help identify the highest water level over time and guide riparian land zoning.
“The centre being built with water conservation in mind would be futuristic as Naivasha is generally a water-scarce area. It would be a model for future development,” Otieno said.
Kenya already has regulators responsible for managing competing demands. The WRA regulates water abstraction and issues water-use permits, while the National Environment Management Authority (NEMA) oversees environmental impact assessments under the country’s environmental regulatory framework.
Attempts by Al Jazeera to obtain comments from WRA and NEMA officials were unsuccessful. Efforts to reach Microsoft-G42 officials and Kenyan government officials for comment on the project’s status and water requirements were also unsuccessful.
For now, the project’s eventual scale, design and water requirements remain unclear, according to KenGen.
“We are now competing with the multibillion [-dollar] companies for water, and we fear that we shall be the losers in the long run,” Leshishi said.
For years, the day in Kulak ended when the generator powered down. Like thousands of villages across Iraq, this small farming community in the semi-autonomous Kurdistan region lived to the faltering rhythm of an erratic power supply: a few hours of electricity, then the water pumps stopped, refrigerators warmed and children put down their books.
Today, Kulak runs on the sun. Solar panels harness its energy, batteries store the excess and residents have power 24/7. The change is visible beyond the homes: water pumps keep running, and cold storage gives farmers more control over when they sell their harvest.
This is the part of the energy transition the global climate conversation too often overlooks. Solar hardware is cheap; the world has learned how to install it. What matters is what comes after the panels go up: building the local capacity to keep the systems running and using reliable power to support farms, livelihoods and communities.
The energy transition will not be won in conference halls. It will be won, or lost, in places like Kulak.
Iraq’s rural energy crisis
Iraq’s energy story is usually told as a paradox. It is one of the world’s great oil producers, yet rural communities still endure daily power cuts. Summers now regularly push past 50 degrees, and the United Nations ranks Iraq among the nations most vulnerable to climate change. Drought has emptied farmland. Heat has made whole regions harder to live in. Rural families face a quiet, grinding choice between staying on land that can no longer sustain them or joining the drift towards overcrowded cities.
These pressures do not respect provincial boundaries. They are shared across Iraq, from the marshes of the south to the mountains of the north. They demand responses that work for the whole country.
For remote communities, decentralised power should not simply be treated as a stopgap while they wait for the grid. It can be part of the long-term answer.
Beyond electrification
Kulak is one of five villages in the Kurdistan region electrified through a solar initiative that pairs new infrastructure with local training and agricultural development. Residents are trained to operate and maintain their own systems, while research is under way into how reliable power can support local production.
Energy is treated not as a gift to be received but as an asset to be managed. That means looking beyond electricity itself to what it can enable: cold storage that allows farmers to hold their harvest for better prices, irrigation that no longer depends on diesel and processing that adds value before crops ever leave the village.
That distinction matters, because the graveyard of development is full of well-intentioned infrastructure. Anyone who has worked in this field has seen the solar array gathering dust because no one was trained to fix an inverter, or the water project abandoned when the foreign NGO moved on.
Sustainability is not a slogan; it is a design choice. Building local capability into a project from day one is the difference between a photo opportunity and a future.
Building the transition from the ground up
There is a broader argument here for the climate movement.
The energy transition is overwhelmingly narrated from the top down: through COP plenaries, G7 communiques and the financing pledges of wealthy nations, many of them unmet. Yet for hundreds of millions of people in the Global South, the transition will arrive, if it arrives at all, through decentralised solutions built close to the ground.
Rural Iraq will not wait decades for grid expansion to reach every valley. It does not have to. Distributed solar suits these communities better than centralised generation ever did, while local institutions can move at a speed that multilateral programmes rarely match.
There is also a quieter point about who gets to act on climate.
The prevailing image of climate action in the Middle East is the megaproject: vast desert solar farms, futuristic cities and sovereign wealth funds. Those have their place. But electrifying farming villages one by one represents a different kind of ambition, one rooted in the belief that Iraqis themselves, in all their diversity, can build the country’s energy future rather than wait for it to be delivered.
Local involvement matters particularly in places where reliable electricity is tied not only to household comfort but to whether farms can irrigate crops, preserve produce and remain economically viable.
Iraq has thousands of rural communities, and scaling this model will require partners, patient financing and supportive policy at every level of government. The agricultural research is promising but young.
On my last visit to Kulak, I was struck less by the panels than by what surrounded them: the cold store, the working pumps, the sense of a community planning for next season rather than next month.
The lights staying on is the least of it. What has really been switched on is the future tense.
If Iraq’s energy transformation is built like this across the whole country, village by village and from the ground up, it will be more durable than anything imposed from above. That means investing not only in the systems themselves, but in the people who will maintain them and the farms, businesses and livelihoods that reliable power can support.
The world’s climate diplomats could do worse than pay attention.
The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.
The government has announced investments of about 2.3 billion reais ($444.2m) to bolster its artificial intelligence ecosystem.
Published On 21 Aug 202621 Aug 2026
Brazil will invest about 2.3bn reais ($444.2m) to bolster its artificial intelligence ecosystem, splitting projects between United States and Chinese tech firms in a strategic move that underscores its efforts to balance ties with both superpowers.
Just more than half the total, 1.3bn reais ($251m), will fund a supercomputing infrastructure project in Rio de Janeiro developed in partnership with China’s Huawei Technologies and iFlytek, President Luiz Inacio Lula da Silva‘s government said on Thursday.
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The infrastructure will be used primarily to develop large language models for general and sector-specific applications, it said.
Separately, about 1 billion reais ($193.1m) will be allocated through a tender for a supercomputer that Brazil expects to rank among the world’s 10 most powerful AI processing machines.
The machine will be installed in the northeastern state of Rio Grande do Norte, chosen for its energy potential. Lula attended an announcement ceremony in the state on Thursday.
The Reuters news agency quoted unnamed government officials as saying they expect US chipmaker Nvidia to win the tender. Science and Technology Minister Luciana Santos told the Folha de S Paulo newspaper last week that she anticipated the company would be the supplier.
“The strategy is not to depend on a single company, technology or country,” Lula’s administration said in a statement, adding that the investments are aimed at strengthening national sovereignty over data.
China, a leading player in AI, has expanded its role as Brazil’s largest trading partner. The US, meanwhile, remains the biggest source of foreign direct investment in Latin America’s largest economy despite losing market share in trade and recently imposing additional tariffs on Brazilian goods.
The investments will be funded by the National Fund for Scientific and Technological Development (FNDCT) through phased disbursements. The government expects the supercomputer to begin operating by the end of next year, while the cooperation agreement with the Chinese companies is scheduled to start in July 2027.
Crude oil and natural gas supplies have been disrupted worldwide by the United States-Israel war on Iran, but one energy sector appears to be cashing in – coal.
This week, South Africa’s thermal coal producer Thungela Resources said it had doubled its half-year profits as the war has forced more countries to buy the fuel.
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Although abundant and relatively cheap to produce, coal is considered one of the dirtiest fossil fuels.
Mining it causes water pollution, and burning it releases enormous amounts of carbon into the atmosphere, which contributes to global warming.
In recent months, several countries, especially in Asia, have reversed or delayed promises to scale back on coal production.
Global coal consumption was already rising in 2025 with the Eurasia region and the US using the fuel to power artificial intelligence data centres, according to the World Bank.
Here’s what we know:
Members of Extinction Rebellion stage a protest with a figure depicting South African Minister of Mineral and Petroleum Resources Gwede Mantashe outside the Investing in African Mining Indaba conference in Cape Town, South Africa, on February 9, 2026 [Esa Alexander/Reuters]
Why is more coal being used?
The US-Israel war on Iran has triggered a global energy crisis. Soon after strikes on Tehran began on February 28, Iran closed the Strait of Hormuz, through which about one-fifth of the world’s oil and liquefied natural gas (LNG) supplies were shipped during peacetime.
Negotiations to reopen the strait are ongoing.
Its closure has reduced oil and gas supplies and caused oil prices to soar, prompting many countries to fall back on the most readily available alternative to keep the power on – coal.
While coal prices have also risen, the fuel is still much cheaper than oil – and is more readily available.
No region has been more impacted than Asia, which largely depends on the Gulf for its energy needs. About 82 percent of oil and gas shipments through the Strait of Hormuz went to Asia in 2022, according to the US Energy Information Administration. China, India, Japan and South Korea were the top destinations.
Besides being unable to ship exports through the strait, Gulf countries caught up in the conflict have also been badly impacted by Iranian strikes. Qatar, for example, was forced to declare force majeure on its delivery contracts in March when Iranian drones hit its Ras Laffan oil facility – the world’s largest LNG complex – forcing it offline. Iran’s attacks had knocked out 17 percent of Qatar’s LNG exports by March, state officials said.
Similarly, the United Arab Emirates’s Das Island LNG terminal, Fujairah oil terminal, Ruwais Refinery Complex and other energy sites have been attacked during the conflict. Facilities in Saudi Arabia and Oman have also been hit.
Where has coal use increased?
According to an analysis by the energy data company Ember, coal output will rise globally by 1.8 percent by the end of 2026 compared with 2025 in a “worst-case” scenario.
This represents a notable uptick considering that countries are meant to be transitioning away from coal, experts said.
Since the war began, several Asian countries have announced plans to increase coal-fired electricity generation.
Japan has lifted restrictions on older, high-emission coal plants to cope with the energy shocks while South Korea has delayed the shutdown of coal-powered plants it promised to wind down by 2040.
In Bangladesh, the government at first imposed power cuts, closed universities and rationed fuel sales for vehicles before announcing it had ramped up coal-powered electricity generation.
Thailand, the Philippines and Vietnam have also increased coal-powered electricity generation to preserve dwindling gas reserves.
In Pakistan, data from the National Electric Power Regulatory Authority showed that by July, electricity generated from imported coal had risen by 90 percent compared with the same period the previous year.
China and India already consume 70 percent of the world’s coal and are also major producers. In India, where electricity demand is increasing partly due to more intense heatwaves, the government plans to launch several new coal-mining projects that will see global supplies increase by 2.5 billion tonnes a year, according to the Global Energy Monitor.
Germany also said it won’t jeopardise electricity generation because of earlier climate promises it made while Italy has pushed back its coal phase-out plans from late 2025 to 2038.
Who is making a profit from coal?
Indonesia is the top coal exporter by a wide margin, followed by Australia and Russia.
In March, Jakarta reversed previous plans to curb coal production and reduce oversupply in a bid to benefit from the rising prices. Prices were set at $131.85 per tonne in July, compared with $102.20 in the previous year.
South Africa’s Thungela, meanwhile, reported doubled profits from January to June, compared with the same period of 2025, driven largely by higher production from its Ensham mines in Queensland as well as higher demand and higher prices at both Ensham and its South Africa operations.
Production at Ensham rose by 38 percent in the first half of the year – during the peak of the conflict – to 2.2 tonnes, compared with 1.6 tonnes in the previous period.
The company reported 4.80 South African rand ($0.30) in headline earnings per share – or HEPS, a primary metric of profitability used in South Africa. That’s up from 1.92 rand ($0.12) in June last year.
In a statement, Thungela said prices will likely remain high as European and Asian markets prepare for winter.
What does this mean for the drive for clean energy?
In 2021, more than 40 countries, including Indonesia and Vietnam, promised to scale back coal use at the COP26 global climate summit. India and China did not sign up, however. Last year, South Korea joined the Powering Past Coal Alliance, which helps coal-dependent economies transition away from the fuel.
However, the Middle East crisis has upset those plans largely because many countries do not have sufficient renewable energy-generating capacity to fall back on, said Nick Hedley, an energy transition analyst at South Africa-based Zero Carbon Analytics.
“For the likes of Bangladesh, it’s easy to lift coal use when global gas supplies are disrupted because the country invested heavily in coal infrastructure in recent decades, and much of that capacity has been sitting idle,” he said.
“Coal becomes cheaper than imported gas when gas prices surge. Importantly, coal still cannot compete with renewables on cost,” Hedley added.
It’s not all doom, however. Analysts noted that upticks in some places are being offset by long-term declines in coal use in places like Europe.
China’s domestic coal production also fell this year as the government tightened oversight following a deadly explosion in May at the Liushenyu coal mine, where 82 people died. Beijing has also made large investments in renewables.
In addition, the breakdown of global fossil energy supply chains could make clean alternatives more competitive and force more countries to invest in them, Hedley pointed out.
“The lesson here is that Asian countries need to speed up their shift to clean energy and electrification to safeguard themselves against future global crises,” he concluded.