India’s proposed and under-construction coal-fired power projects carry a massive stranded asset risk, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA).
The report highlights that the financial risk for new coal-fired power projects is under-estimated. It stresses on evaluating the financial viability of these projects based on the right estimation of utilization factors.
Currently, India has 33 GW of coal-fired power plants under construction and another 29 GW of proposed projects under various stages of regulatory approval.
The IEEFA report said coal-fired power plants may look like low-cost projects and worthwhile ventures to potential investors as their levelized cost of energy (LCOE) is being underestimated.
[Uma Gupta ]