Commentary

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IEEFA India: Exiting old coal power purchase agreements could save electricity distributors over US$7 billion per year

Allowing distributors to leave end-of-tenure PPAs will accelerate retirement of ageing coal plants

The decision by India’s central power regulator to allow BSES, Delhi’s largest electricity distribution company (discom), to exit a 25-year-old power purchase agreement (PPA) with NTPC’s Dadri-I power plant potentially opens the floodgates to the relinquishment of end-of-tenure thermal PPAs. This is a welcome move that could accelerate the closure of old, inefficient coal power […]

IEEFA: Pakistan’s new long-term power plan – one step forward, two steps back

Over reliance on hydro whilst slashing wind and solar increases risk of missing the 60% clean energy target

Pakistan has released a new version of its long term power plan – the Indicative Generation Capacity Expansion Plan (IGCEP) for 2021. IEEFA highlighted some issues with the 2020 version in September last year. The new iteration of the IGCEP – prepared by the National Transmission and Despatch Company (NTDC) – states on page 1 […]

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IEEFA: Deploying batteries at scale in the Indian power sector

A case for battery targets complemented with discom-controlled dispatch

India needs to deploy batteries at scale in the power sector. The country envisages uptake of 450 gigawatts (GW) of renewable energy capacity by 2030. The high penetration of intermittent renewable energy will bring up issues around managing system flexibility in terms of steeper ramps and peaking load requirements. In India, system flexibility has historically […]

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IEEFA U.S.: Prices are up—but the oil industry’s return is more complicated

Rising oil prices fail to mask long-term fundamental weaknesses for oil business

Former ExxonMobil CEO Lee Raymond advanced the idea in the 1980s that the quality of management trumped all else in evaluating the oil industry’s prospects. He believed oil company executives were in the best position to project supply and demand, ride worldwide growth cycles, and provide robust returns to investors, no matter how oil markets […]

IEEFA Australia: From coal to inverters, AEMO’s engineering vision is ambitious and necessary

Regulators and governments must increase pace to match market operator's vision of 100% renewables by 2025

George Orwell wrote “Our civilisation is founded on coal … The machines keep us alive and the machines that make machines, are all directly or indirectly dependent upon coal”. From colonisation until recently, Australia too has been dependent on coal and gas and the large spinning turbines that turn these ancient, buried resources into electrons. […]

IEEFA Europe: Snam and the hydrogen distraction

Consumers and taxpayers will pick up the tab for billion-euro hydrogen subsidies and investments

Earlier today, Marco Alverà, CEO of Snam, Europe’s largest gas pipeline company, published an opinion piece in the Financial Times (FT), titled “Energy is on the cusp of a new era.” In it, Alverà extols the virtues of hydrogen as an energy source, as well as promotes his new book on the topic.  I was […]

July 14, 2021 Read More →
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IEEFA U.S.: Surge of coal-fired generation retirements looking like a reverse S-curve

Consumers Energy, TVA among utilities planning full exits from coal

There is an inverse S-curve developing in the U.S. coal generation sector, with announced plant retirements expanding rapidly as utilities and independent power producers adjust to the influx of cleaner and cheaper wind, solar and battery storage resources disrupting the electric system. IEEFA data shows that just since March, the generating capacity of coal plants […]

IEEFA: Japan still seeking to exploit coal power loopholes

JBIC wants to continue burdening developing nations with its expensive coal-fired power technology

Japan is continuing to push its expensive coal-fired power technology on developing nations if such projects feature carbon capture and storage (CCS) or if a proportion of ammonia or biomass is co-fired with the coal. The Japan Bank for International Cooperation’s (JBIC) announcement comes only a few months after it was reported that the state-owned […]

IEEFA U.S.: South Carolina regulators reject Duke’s gas-dependent integrated resource plan

Regulators in North Carolina should follow suit, require changes to Duke Energy’s inadequate IRP

July 8, 2021 (IEEFA) ⎼ South Carolina regulators last month rejected Duke Energy’s integrated resource plan (IRP), directing the utility to resubmit its proposal after incorporating nearly a dozen significant changes and new analyses. Many of these changes had been proposed by a broad group of participants in the IRP process and were recommended in […]

IEEFA: India’s biggest oil and gas giant takes a leap into clean energy

Reliance Industries’ entry into clean energy could be a game changer for India

In late June this year, Mukesh Ambani, chairman of Reliance Industries, announced a Rs75,000 crore (US$10bn) investment plan into clean energy in India over the next three years. This announcement was met with the usual eye roll. A perceived shift to clean energy by a big oil and gas giant is fraught with both scepticism […]