Global Coal Markets

IEEFA Research

IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

‘New Level of Risk’ Seen in Investing in Outdated Power Generation

May 14, 2018 (IEEFA) — Indonesia’s state-owned utility may raise electricity tariffs to offset its growing costs, concludes an investment-research memo published today by the Institute for Energy Economics and Financial Analysis. The memo—“PLN’s Coal IPP Funding Gap Suggests Tariffs Must Rise in 2020”—comes as the utility plans to bring a more than $1 billion debt […]

IEEFA Report: Indonesia’s State Power Company Continues to Lag Global Shift in Electricity Generation

IEEFA Report: Indonesia’s State Power Company Continues to Lag Global Shift in Electricity Generation

‘Sinking Under the Weight of a Flawed Planning Process That Lacks Crucial Insight Into Clean Energy Trends’

IEEFA — Indonesia’s national power company is perilously out of step with global trends in electricity generation even as it seeks a more than $1 billion infusion from international bond markets, concludes a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The report — “Perusahaan Listrik Negara (PLN): A Power Company […]

April 19, 2018 Read More →

IEEFA Australia: Adani Is Said to Seek Financing From a Chinese State-Owned Enterprise

'New Geopolitical Questions for an Already Highly Controversial Project'

Nov. 2, 2017 (IEEFA) — A Chinese government-owned enterprise is being courted as a new partner for Adani’s proposed Carmichael coal mine and rail project in northern Queensland, according to a research brief published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The deal being sought with state-owned China Machinery Engineering Corporation […]

November 2, 2017 Read More →
IEEFA Report: Endesa’s Plan to Upgrade Aging Spanish Coal Plants Puts €400 Million in Shareholder Wealth at Risk

IEEFA Report: Endesa’s Plan to Upgrade Aging Spanish Coal Plants Puts €400 Million in Shareholder Wealth at Risk

New Emissions Rules Loom Large Across EU; Gas-Fired Generation and Renewables Present Better Investment Opportunities; Major Utilities Are Out of Step With Markets

October 25, 2017 (IEEFA.org) — A research paper published today by the Institute for Energy Economics and Financial Analysis finds that plans by Enel Group’s Spanish-subsidiary Endesa to sink €400 million into upgrading three aging coal-fired plants is a likely loss-making proposition under new European Union emission-control rules. The report—“How European Utilities Can Capitalize on […]

October 26, 2017 Read More →

IEEFA Australia: Escalating Financial Risk in Adani’s Abbot Point Coal Terminal

Begging the Question as to Why the Government Would Lend Heavily to a Tax-Haven Scheme Controlled by a Foreign Billionaire

Oct. 2, 2017 (IEEFA) — New analysis by The Institute for Energy Economics and Financial Analysis (IEEFA) finds that Adani’s Abbot Point Coal Terminal is excessively leveraged, promises negative shareholders equity, and runs the risk of becoming a stranded asset if Adani’s proposed Carmichael mine does not get the A$1 billion Australian taxpayer subsidy it […]

October 2, 2017 Read More →
IEEFA Australia: Hume Coal Proposal Will Be Left Behind as Energy Markets Move On

IEEFA Australia: Hume Coal Proposal Will Be Left Behind as Energy Markets Move On

New Coal Mine Makes Even Less Sense than It Did Last Year; Hume Will Find it Hard to Compete with Higher-Quality Coking Coal

Despite the significant increase in coking coal prices that began in late 2016, the proposed Hume Coal project in the Southern Highlands of New South Wales seems no more likely to proceed now than it did when IEEFA reviewed it ten months ago. Hume Coal, a subsidiary of South Korea’s largest steel maker POSCO, has […]

IEEFA Report: State-Owned Utility NTPC Takes a Lead Role in India’s Electricity Transition

IEEFA Report: State-Owned Utility NTPC Takes a Lead Role in India’s Electricity Transition

Country’s Largest Generation Company—Ranked Third Globally in Coal-Fired Capacity and Seventh in Generation—Emerges as Key Supporter of Government’s Renewable-Energy Initiative

May 25, 2017 (IEEFA.org) — The state-owned Indian utility NTPC is playing a key role in India’s push toward retooling its electricity-generation system, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). The report—“NTPC as a Force in India’s Electricity Transition: Leading the Way Toward a New Energy Economy”—details how […]

IEEFA Update: An Increasingly Cursed Australian Coal Project

IEEFA Update: An Increasingly Cursed Australian Coal Project

Bad Financials, Weak Markets, Policy Headwinds, Social-License Issues, Transparency Questions, Climate Risk: The Many Afflictions Hobbling the Proposed Carmichael Mine

IEEFA has released an update today on Adani’s long-festering coal mine project in northern Queensland that plumbs the depths of the Indian conglomerate’s financials and finds them vastly insufficient for the supposed job at hand. Our report— “Adani: Remote Prospect: Carmichael Status Update 2017”—follows on previous work we’ve done around what would be the biggest new coal […]

IEEFA Europe: Can Coal Power Hang On?

IEEFA Europe: Can Coal Power Hang On?

Investors May Not Be Eager to Absorb More Losses Like Those Seen in Recent Dutch Build-Outs

Investment in new coal-fired power plants appears off the agenda in Western Europe. Witness the astonishing write-down of brand-new assets in the Netherlands, where European utility giants RWE, Uniper, and Engie have drastically reduced their valuations of plants barely a year old (read the report we published this morning, “The Dutch Coal Mistake,” which concludes […]

November 30, 2016 Read More →
IEEFA Update: IEA, Still Behind the Curve, Nonetheless Indicates Rising Stranded-Asset Risk in Fossil-Fuel Holdings

IEEFA Update: IEA, Still Behind the Curve, Nonetheless Indicates Rising Stranded-Asset Risk in Fossil-Fuel Holdings

A Not-So-Distant Future in Which Thermal-Fired Electricity Generation Declines Precipitously

The International Energy Agency, out with its annual energy-markets forecast, “World Energy Outlook 2016,” remains behind the curve but not as far behind as it was. A history of IEA underestimation of technology change has been partially remedied in this new report, but the agency’s solar and wind forecasts can at best be described still […]

November 17, 2016 Read More →

More News and Commentary

Column: Coal optimism in Australia hides unease about long-term problems

Reuters: BRISBANE—Coal miners supplying Asia’s rapidly growing economies have plenty to be optimistic about as prices and demand appear robust, but they should be wary of getting caught up in the positive feedback loop that nearly destroyed them before. This week’s inaugural Energy Mines and Money conference in Brisbane, the heartland of the industry in […]

June 22, 2018 Read More →

BNEF expects steep decline in coal generation through 2050

PV Magazine: In its 2018 New Energy Outlook, Bloomberg New Energy Finance (BNEF) sees skyrocketing growth in the global solar and wind energy markets up to 2050. Overall, it anticipates that solar and wind will account for nearly half of global electricity generation by this date, driven by “precipitous” cost reductions–leading to levelized costs of […]

June 19, 2018 Read More →

IEEFA Europe: As risks mount, Poland’s PGE struggles to break from its fossil fuel past

Utility company’s actions contradict its stated intent to change

The extreme case of Poland’s largest utility, PGE, shows how Europe’s more coal-intensive power companies are struggling to turn away from fossil fuels. Headwinds facing fossil fuel electricity generation in Europe include the global transition toward low-carbon energy sources, pressure on investors to align their investments accordingly, and environmental advocacy opposing bank financing of coal […]

June 14, 2018 Read More →

BP report: Coal still at 38% of global power generation

Reuters: LONDON—Global greenhouse gas emissions began rising again last year as the first pick-up in coal burning since 2013 overshadowed a record expansion in renewable energy, a BP report said. Energy demand accelerated in 2017 by 2.2 percent, but a 17 percent gain in clean power such as solar and wind did little to offset […]

June 13, 2018 Read More →

Analysts say new Vietnam coal plants aren’t needed

VN Express International: Nation can save $7 billion in coal imports and reduce carbon dioxide emissions by 116 million tons each year, experts say. Vietnam should remove 25 coal power plants from its post-2020 energy master plan, prevent massive environmental pollution and save a lot of money, experts say. At a conference on energy conservation […]

June 8, 2018 Read More →

IEEFA Update: Indonesia’s Electric Company Gets Its Bond Deal Done, But Investor Risk Remains

How Much Will the Government Be Willing to Subsidize PLN?

Last week was good to PLN, Indonesia’s state owner power company. Despite chaotic emerging bond markets, which had punished the rupiah and pushed yields on Indonesian bonds higher, PLN was able to paddle safely to shore with a successful US$2 billion bond issue. Flexibility was the key to getting the financing done. With guidance from […]

Australia: Developers Scrap Plans for Coal-Export Expansion in Newcastle

Sydney Morning Herald: The $5 billion-plus Terminal 4 coal export expansion planned for Newcastle has been scrapped after demand for the fossil fuel failed to increase as expected. Port Waratah Coal Services said on Thursday that it would allow a lease for the terminal – known as T4 – to lapse, signalling that the project […]

May 31, 2018 Read More →

Royal Bank of Scotland Ends Financing for New Coal Projects

The Guardian: Royal Bank of Scotland will no longer fund Arctic oil projects and has pledged to cut lending to firms profiting largely from coal as part of an updated energy policy. The changes cover the mining, power and oil and gas sectors and are aimed at taking a tougher line on climate change. They […]

May 29, 2018 Read More →

Australia: AGL Moves Forward With Plans to Close Liddell Coal Plant

The Guardian: The energy minister, Josh Frydenberg, has called on AGL Energy to make a financial commitment to its transition plan after the company rejected a bid from Alinta for the ageing Liddell power plant, and confirmed it will shut the facility as planned in 2022. In a decision delivering a public rebuke to the […]

May 23, 2018 Read More →

More Transmission Would Speed Coal Plant Closures Says German Regulator

Reuters: FRANKFURT—Germany could reduce its coal-fired power generation capacity by half in the coming years if planned grid expansion and the addition of new gas-fired plants come online on schedule, the head of its energy regulator said. “Half of coal-fired power plant capacity can disappear by 2030 without any risk to supply,” Jochen Homann, president […]

May 22, 2018 Read More →