IEA representatives present the World Energy Outlook 2009 report to the European Commission

According to the International Energy Agency, it is not possible to produce enough renewable energy to meet increasing demand. That means coal will still be needed to provide power to the masses and new plants will have to be built.

The IEA reported to the EU that the gap between renewable energy supply and consumer demand will continue to widen through 2030. They expect the largest demand in consumption to come from India and China as demand will be four times the current capacity of the United States. Further, they expect coal will be the major energy source as prices will continue to decline. The forecast was that coal will be $109 per ton in 2030 compared to $120 in 2008. Coal-fired power will contribute 44 percent of demand by 2030 compared to 41 percent today.

European and U.S. governments continue to push the development and use of renewable energy sources. The report from the IEA indicates there will be a shortage of such technologies available. The current political climate is restricting the construction of coal-fired power plants. This condition would make the statement from President Obama as he campaigned for the position to be highly prophetic when he said in January 2008 that electricity costs would skyrocket. So, as we demand consumers switch to electric cars and digital TVs but make them pay more for that electricity, it just feels like being in a vice that gets tighter and tighter.