Many developing and developed countries have decided to phase out coal in the power sector in the short and medium term. In Europe, only four countries (Bosnia and Herzegovina, Kosovo, Poland and Serbia), along with Turkey, have not set a date for phasing out coal-fired electricity generation. With many banks and financial institutions announcing that they will no longer support coal-related investments, access to finance for new coal investments has become increasingly difficult. Ahead of the 26th Meeting of the Parties (COP26) in Glasgow, G20 countries, following China, South Korea and Japan, announced that they would no longer finance international coal projects. As a result of these dynamics, coal-based electricity generation was expected to slow down or decline worldwide.<\/p>\n\n\n\n
In the second half of 2020, spot price of coal fell below $50 per tonne. The economic recovery after the coronavirus outbreak, problems with transport and increased demand for coal in China pushed prices up sharply. The economic crisis exacerbated by the invasion of Ukraine also pushed energy prices even higher. In June 2022, it climbed above $400, reaching the highest levels in history.<\/p>\n\n\n\n
According 28 Lazard’s analysis of 28 October 2021<\/a>, the levelised cost of electricity generation for coal plants ranges from 6.5 US dollar cents to 15.2 cents per kilowatt-hour (kWh). In the same analysis, the kWh cost of solar power ranges from 2.8 to 4.1 cents, and wind from 2.6 to 5 cents. This reduces the competitive chances of coal. Prices in Turkey are in parallel with the world. In the tender for the \u00c7ay\u0131rhan B Thermal Power Plant project held in 2017, the Kolin-Kalyon Enerji-\u00c7elikler Joint Venture Group submitted the lowest bid at 6.04 cents per kWh <\/a>6.04 cents per kWh (the price at which they would sell the electricity they generated to the grid) and won the tender. The project was later cancelled. In the Renewable Energy Resource Areas SPP-4 tende<\/a>r held in June 2022, a solar power plant project to be built in Ni\u011fde won the tender with a price offer of 37.5 TRY kuru\u015f per kWh (2.1 dollar cents at the exchange rate of 12 July).<\/p>\n\n\n\n <\/p>\n\n\n\n