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India coal-fire projects carry massive stranded asset risk

July 07, 2021

PV Magazine:

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 ] 

More: IEEFA warns the financial risk for new coal under-estimated

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