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IEEFA: Gas power plants assuming a constant capacity factor are being financially overvalued

IEEFA: Gas power plants assuming a constant capacity factor are being financially overvalued

Investors beware, capacity factor trends and LCOE analysis show gas-fired power plants likely to be stranded assets into the future

24 June 2021 (IEEFA Australia): The Australian government may be relying on inaccurate financial assumptions for its gas-fired recovery as most gas- and coal-fired power plants in Australia, the UK, the U.S. and China are being operated less and less – what’s called a declining capacity factor, finds a new report by the Institute for […]

IEEFA: Vanguard funds destroy shareholder wealth with US$290bn in fossil fuels creating a 5.6% performance drag

IEEFA: Vanguard funds destroy shareholder wealth with US$290bn in fossil fuels creating a 5.6% performance drag

A global laggard that has minimal transparency, is passive on climate, and is abrogating its fiduciary duty to best manage risk for investors

22 June 2021 (IEEFA Australia): Vanguard Group, the world’s second largest asset manager, is leaving its investors to face profound wealth destruction risks as the world’s largest investor in fossil fuels, all while insisting climate change is a priority for the company, finds a new report by the Institute for Energy Economics and Financial Analysis […]

IEEFA: Powering up solar irrigation effort will support India’s renewable energy targets

IEEFA: Powering up solar irrigation effort will support India’s renewable energy targets

States must overcome obstacles to ramp up installation of solar pumps

11 June 2021 (IEEFA India): India’s mission to deploy some 2 million off-grid solar-powered irrigation pumps is making sluggish progress, with only one-eighth of the target achieved so far, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA) which urges the central and state governments to remove bottlenecks in […]

IEEFA U.S.: ExxonMobil touts Permian Basin success but achieves mixed results

IEEFA U.S.: ExxonMobil touts Permian Basin success but achieves mixed results

Data suggests that ExxonMobil is underperforming in the Permian Basin

June 9, 2021 (IEEFA) – ExxonMobil’s claims that its Permian Basin oil and gas reserves are world-class will need the immediate attention of the new board, according to a new analysis by the Institute for Energy Economics and Financial Analysis (IEEFA). In recent investor presentations, ExxonMobil has highlighted the superior performance of its oil wells […]

IEEFA: A loss of excise tax revenue should not stall the uptake of electric vehicles in Australia

IEEFA: A loss of excise tax revenue should not stall the uptake of electric vehicles in Australia

More pragmatic focus would be incentivising industry and modernizing the grid

8 June 2021 (IEEFA Australia): A new tax on EV users is unnecessary as the Australian (Commonwealth) government is well placed to deal with the potential revenue impact of the inevitable move to electric vehicles, finds a new briefing note by the Institute for Energy Economics and Financial Analysis (IEEFA). Global automotive manufacturers have committed almost […]

IEEFA: New coal-fired power plants in India will be economically unviable

IEEFA: New coal-fired power plants in India will be economically unviable

Coal capacity additions face major stranded asset risk

4 June 2021 (IEEFA India): Much of India’s 33 gigawatts (GW) of coal-fired power capacity currently under construction and another 29GW in the preconstruction stage will end up stranded, according to a new briefing note by the Institute for Energy Economics and Financial Analysis (IEEFA). “Coal-fired power simply cannot compete with the ongoing cost reductions […]

IEEFA: Zero to 60% in 14 years – South Australia’s success in transitioning to renewables

IEEFA: Zero to 60% in 14 years – South Australia’s success in transitioning to renewables

Seven important lessons for energy planners around the globe in transitioning grids from fossil fuels to renewables

3 June 2021 (IEEFA Australia): South Australia offers vital lessons for other jurisdictions transitioning from a fossil fuel-based electricity grid to a low emissions, high renewables grid, finds a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). “The proportion of South Australia’s electricity demand met by large scale and small scale variable […]

IEEFA: Nuclear power euphoria in Indonesia is all smoke and mirrors with no current technical, financial or market viability

IEEFA: Nuclear power euphoria in Indonesia is all smoke and mirrors with no current technical, financial or market viability

Renewables should be the focus of Indonesia’s net-zero pledge

2 June 2021 (IEEFA Indonesia):  In growing energy markets like Indonesia, decision makers are facing a barrage of pro-nuclear media coverage as the nuclear industry floods the market with panels and webinars focused on the potential of nuclear power. A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) highlights that while […]

IEEFA: Chinese regulators urged to tighten rules for carbon neutral bonds

IEEFA: Chinese regulators urged to tighten rules for carbon neutral bonds

Bond proceeds going to coal-dominated state-owned enterprises – ESG investors beware

1 June 2021 (IEEFA): China’s carbon neutral bonds fail to restrict the use of funds to green projects and are adding to the working capital of coal-dominated state-owned enterprises (SOEs), according to a new briefing note from the Institute for Energy Economics and Financial Analysis (IEEFA) which calls for deeper reforms to green finance standards […]

IEEFA U.S.: Investors hesitate to fund San Juan Generating Station CCS retrofit

IEEFA U.S.: Investors hesitate to fund San Juan Generating Station CCS retrofit

Enchant Energy’s carbon capture project is significantly behind schedule as it struggles to secure investors

May 27, 2021 (IEEFA) – Enchant Energy and the City of Farmington have failed to convince potential investors that retrofitting New Mexico’s San Juan Generating Station for carbon capture is financially viable, according to a report from the Institute for Energy Economics and Financial Analysis (IEEFA).  The project, which has yet to secure the funds […]

More News and Commentary

IEEFA: Why India’s solar power tariffs are climbing after hitting record lows last year

What’s behind the recent increase?

Solar tariffs are deflationary. Prices have fallen by 75% in seven years in India, and in 2020 solar tariffs hit record lows. From 2019 to the first quarter of 2020, most of India’s newly-auctioned solar projects saw tariffs in the range of Rs2.5-2.87/kilowatt hour (kWh). Then in February 2020, the Ministry of New and Renewable Energy […]

June 24, 2021 Read More →
IEEFA: Gas power plants assuming a constant capacity factor are being financially overvalued
, and

IEEFA: Gas power plants assuming a constant capacity factor are being financially overvalued

Investors beware, capacity factor trends and LCOE analysis show gas-fired power plants likely to be stranded assets into the future

24 June 2021 (IEEFA Australia): The Australian government may be relying on inaccurate financial assumptions for its gas-fired recovery as most gas- and coal-fired power plants in Australia, the UK, the U.S. and China are being operated less and less – what’s called a declining capacity factor, finds a new report by the Institute for […]

IEEFA U.S.: Federal appeals court tosses out FERC approval for Spire STL Pipeline

Court rejects FERC acceptance of affiliate contract as evidence of public need

The U.S. Court of Appeals for the District of Columbia made a precedent-setting ruling on Monday, in a pivotal case challenging the Federal Energy Regulatory Commission (FERC) approval of the Spire STL pipeline that would transport gas from Illinois to Missouri. The ruling is important for two reasons. First, it rejected FERC’s decision to base […]

IEEFA U.S.: Coal-fired carbon capture projects are waste of tax dollars
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IEEFA U.S.: Coal-fired carbon capture projects are waste of tax dollars

San Juan, New Mexico CCS plan part of push for more ‘carbon dioxide factories’

The federal government’s support for carbon capture projects at coal-fired power plants may be politically necessary (see Sen. Joe Manchin, D-W.Va.), but it is environmentally and fiscally misguided. The potential for Department of Energy funding and the lure of federal tax credits are pushing plant owners and avaricious developers to push for the conversion of […]

Report finds most new wind, solar to provide cheaper power than coal

The Guardian:  Almost two-thirds of wind and solar projects built globally last year will be able to generate cheaper electricity than even the world’s cheapest new coal plants, according to a report from the International Renewable Energy Agency (Irena). The agency found that the falling cost of new windfarms and solar panels meant 62% of […]

June 23, 2021 Read More →

Major South Korea insurers will stop underwriting coal projects

Reuters:  South Korea’s three major non-life insurers told Reuters on Tuesday they will no longer provide coverage for new coal power projects, including their construction and operation. DB Insurance, Hyundai Marine & Fire Insurance and Hana Insurance, said they will stop underwriting coal power projects. DB Insurance added it will gradually retract its existing insurance […]

June 23, 2021 Read More →

Appeals court rejects FERC authorization of Spire STL pipeline

Reuters:  A federal appeals court on Tuesday threw out 2018 authorizations by the Federal Energy Regulatory Commission (FERC) allowing Spire STL to build a roughly $285 million natural gas pipeline near St. Louis, Missouri that is now operational, in a rare victory against the regulator by environmentalists who sued. A unanimous panel of the U.S. […]

June 23, 2021 Read More →

Nordex boosts share in booming Finland wind turbine market

Wind Power Monthly: Nordex has secured a 199.5MW order for four wind farms in the west of Finland, taking its annual total for the market beyond 500MW already. It will supply N163/5.X turbines to four projects in the interior of the mid-west of Finland, as well as in the west of the country, near to […]

June 23, 2021 Read More →

New Colorado law requires utilities to offer electrification incentives

S&P Global Market Intelligence ($): Colorado will require investor-owned electric utilities to incentivize building electrification, marking a new strategy to reduce the building sector’s reliance on natural gas and other fossil fuels for heating and cooking. Colorado Gov. Jared Polis signed the legislation, SB21-246, into law on June 21, setting in motion a process that […]

June 23, 2021 Read More →

Hydro-Quebec finishes solar parks for test of diverse energy sources

PV Magazine: Canada-based power company Hydro-Quebec has announced the completion of two solar parks with a combined capacity of 10 MW. Construction on the two facilities, which are Quebec’s first operational PV plants, had started in the summer of 2019. The plants have capacities of 7.5 MW and 2.5 MW and are planned to help […]

June 23, 2021 Read More →