Stranded Assets

IEEFA Research

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: 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: Vietnam’s PDP8 delay is an opportunity to unlock more cost-effective renewable energy

IEEFA: Vietnam’s PDP8 delay is an opportunity to unlock more cost-effective renewable energy

The key is to refine new strategies and improve market structures

13 May (IEEFA Vietnam):  Vietnam’s Power Development Master Plan for 2021-2030 with a vision to 2045 (PDP8), was expected to be signed off at the end of March during the last days of Prime Minister Nguyen Xuan Phuc’s administration, but it hit an unexpected delay. Rather than being a setback, however, this delay can be […]

IEEFA: LNG-to-power investors in the Philippines risk exposure to $14 billion in stranded assets

IEEFA: LNG-to-power investors in the Philippines risk exposure to $14 billion in stranded assets

High regulatory and financial uncertainty in the Philippines market

5 May 2021 (IEEFA Philippines):  The race to develop liquified natural gas (LNG) facilities in the Philippines has gone from a marathon to a sprint but potential LNG investors must proceed at their own risk, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). “Officials in the Philippines have […]

IEEFA U.S.: Duke Energy IRPs for Carolina utilities overlook opportunities for savings from renewables

IEEFA U.S.: Duke Energy IRPs for Carolina utilities overlook opportunities for savings from renewables

Integrated resource plans for Duke give short shrift to offshore wind, solar and battery storage

April 5, 2021 (IEEFA) ⎼ A pair of long-range plans for Carolina utilities owned by Duke Energy are all but ignoring potential savings from renewable energy sources over the next decade, according to a report by the Institute for Energy Economics and Financial Analysis. The IEEFA report is the fourth in a series examining the […]

IEEFA: Santos’ Barossa gas field emissions create major risks for shareholders 

IEEFA: Santos’ Barossa gas field emissions create major risks for shareholders 

With export markets' changing expectations, investors and industry beware

31 March 2021 (IEEFA Australia): Santos’ proposed offshore Barossa gas field near Darwin, Northern Territory has the unfriendly tag of having more carbon dioxide than any gas currently made into LNG, finds a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). The gas contains so much CO2 that most of it […]

IEEFA Australia: Port of Newcastle’s roadblock on the path away from thermal coal

IEEFA Australia: Port of Newcastle’s roadblock on the path away from thermal coal

Planned fossil fuel exit by the world’s largest coal port is paralysed by lending constraints and a secret NSW government deal

The Port of Newcastle’s planned exit from fossil fuels suffered further setback last month after ANZ withdrew financing from the terminal, presently the world’s largest port for exporting thermal coal. ANZ had previously been a major lender to the port, however divested its position during the latest round of refinancing of approximately A$900 million in […]

March 18, 2021 Read More →
IEEFA Europe: Snam woos investors with net-zero claims, while growing its spending on fossil gas infrastructure

IEEFA Europe: Snam woos investors with net-zero claims, while growing its spending on fossil gas infrastructure

Italian gas giant publicizes hydrogen commitment while spending shows business as usual

March 16, 2021 (IEEFA) — Even as it seeks to attract funding from sustainability-led lenders, Europe’s largest gas pipeline company continues to devote the vast majority of planned capital spending to unabated fossil gas infrastructure, according to a report from the Institute for Energy Economics and Financial Analysis (IEEFA). Snam, the Milan-based gas transmission system […]

IEEFA: Duke Energy’s North Carolina gas IRPs fail to consider battery storage as viable option

IEEFA: Duke Energy’s North Carolina gas IRPs fail to consider battery storage as viable option

Utility claims natural gas is cheaper than battery storage

February 18, 2021 (IEEFA) — Duke Energy’s plans for its two utilities in the Carolinas rely on outdated cost estimates to avoid expanding battery storage capacity, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA). In their latest integrated resource plans (IRPs), Duke Energy Progress and Duke Energy Carolinas […]

IEEFA U.S.: Duke IRPs overstate likely future demand growth

IEEFA U.S.: Duke IRPs overstate likely future demand growth

More realistic estimates would undercut case for new gas-fired generation

February 3, 2021 (IEEFA) — Forecasts used by Duke Energy that predict steadily rising demand for electricity in the Carolinas ignore the company’s sales history in the past 15 years, which have been essentially flat, and should be challenged by state regulators, according to a new study by the Institute for Energy Economics and Financial […]

More News and Commentary

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: Global investment is racing to meet the IEA’s Net Zero by 2050 roadmap – how will this impact India?

IEEFA: Global investment is racing to meet the IEA’s Net Zero by 2050 roadmap – how will this impact India?

Global shift of funds away from fossil fuels is accelerating

The International Energy Agency’s (IEA) Net Zero Emissions (NZE) roadmap by 2050 is compatible with the Paris goal of restricting the temperature increase to below 1.5 degree Celsius. As per the NZE roadmap, the use of unabated fossil fuels declines sharply to just over a fifth of the total energy supply. More than two-thirds of […]

June 11, 2021 Read More →

IEEFA: It’s time for the Biden administration to champion renewable energy in the Philippines, not nuclear or fossil gas

Fossil gas and nuclear investments risk locking in costly, outdated infrastructure for the long-term

The United States has spent the past four years pushing expensive, unreliable energy infrastructure in the Philippines, rather than promoting cheap renewable technologies better suited for the Philippines market and its clean energy goals. The former Trump administration’s “energy dominance” agenda aimed to stimulate Southeast Asian demand for US fossil gas and nuclear exports as […]

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

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 […]

EPA suggests FERC consider gas pipelines as potential stranded assets

S&P Global Market Intelligence ($): The U.S. Environmental Protection Agency staked out a new position on federal reviews of interstate natural gas pipelines, advising the Federal Energy Regulatory Commission to weigh the potential for “carbon lock-in” and the “costly irreversibility” of building such infrastructure. The EPA, as a representative of the Biden administration, has the […]

June 1, 2021 Read More →

Carbon-burning power plants launching despite net-zero promises

Bloomberg ($): The red-and-white flue stacks of the James M. Barry Electric Generating Station tower over the Mobile River, belching steam into the Alabama sky. The sprawling complex of coal and natural gas plants already spews more than 7.5 million metric tons of carbon dioxide-equivalent every year. Now it’s about to get even bigger, with […]

May 24, 2021 Read More →

Wood Mackenzie: Uncertain fate for $14 trillion of oil, gas assets

Reuters ($): Global energy transition is creating uncertainty for an estimated $14 trillion worth of oil and gas assets that have long depended on an indefinite rise in demand to offset risks despite a pandemic boost this year, consultancy Wood Mackenzie said on Thursday. As the world recovers from the COVID-19 pandemic, oil and gas […]

May 21, 2021 Read More →
IEEFA Australia: Why ‘gold-plated’ gas plan makes zero sense

IEEFA Australia: Why ‘gold-plated’ gas plan makes zero sense

The federal government should invest in clean energy industries of the future, not a stranded asset

The Hunter has the answer to Australia’s energy debate, and it’s not a new gas plant at Kurri Kurri because any way you look at it, it just doesn’t make sense. This new 660 megawatt diesel and gas peaking power station, announced yesterday by Australia’s Morrison government, will cost taxpayers $610 million and is part […]

Global demand for super-cooled LNG is becoming cold

Reuters ($): This week’s decision by Australia’s Woodside Petroleum Ltd (WPL.AX) to pull out of a big Canadian liquefied natural gas (LNG) project was the latest blow to a sector that has been heralded for its growth prospects worldwide. Demand for super-cooled LNG has surged in recent years as large energy-consuming nations like China and […]

May 20, 2021 Read More →
IEEFA: IEA’s net zero emissions by 2050 maps the huge increase in global ambition

IEEFA: IEA’s net zero emissions by 2050 maps the huge increase in global ambition

Collective global government and corporate pledges, accelerating financial flows and straight economic gains make this a necessary, realistic and achievable outcome

The International Energy Agency’s (IEA) Net Zero by 2050 energy sector roadmap out today says the world should add “no new oil and gas fields approved for development in our pathway, and no new coal mines or mine extensions are required”. Simply put, more fossil fuels are entirely inconsistent with reduced emissions. Existing unabated coal […]

May 18, 2021 Read More →