Mae Moh coal-fired power plant in Thailand. (Photo: EGAT)
In 2023, global coal-fired power plant capacity has increased rather than decreased, partly because power plants cannot afford the high costs of early retirement. However, a new report released on June 17 by the U.S. think tank Institute for Energy Economics and Financial Analysis (IEEFA) indicates that more than 800 coal-fired power plants in emerging markets could transition to renewable energy profitably, creating more investment opportunities for the decarbonization of the energy industry.
IEEFA found that large-scale renewable energy investments, combined with revised Power Purchase Agreements (PPAs), can fully cover the costs required for converting coal-fired power plants and even yield substantial profits. This is mainly due to long-term PPAs that ensure significant revenue and can gradually reduce and eliminate coal-fired power generation over the 20 to 30 years of renewable energy construction and phased commissioning.
