Stranded Assets

IEEFA Research

IEEFA: High stakes for Asian Development Bank’s ambitious coal power retirement plan

IEEFA: High stakes for Asian Development Bank’s ambitious coal power retirement plan

Implementation challenges could block funding for other equally important high impact clean energy funding strategies

24 September 2021 (IEEFA Asia): In the lead up to the United Nations Climate Change Conference COP26, the Asian Development Bank (ADB) announced a plan to speed up the retirement of high emissions coal-fired power plants in Southeast Asia. This announcement sets the stage for a transformation of the Asian multilateral development bank’s (MDB) role […]

IEEFA Australia: There’s a better way to manage coal closures than paying to delay them

IEEFA Australia: There’s a better way to manage coal closures than paying to delay them

Energy Ministers and the energy industry should reject the ESB capacity mechanism proposal

21 September 2021 (IEEFA Australia): The Energy Security Board’s (ESB) proposal for consumers to pay conventional generators such as coal and gas an extra fee for their capacity, not just the actual power they produce, should be rejected by Energy Ministers at a forthcoming meeting this Friday argues a new report prepared by energy market […]

IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs

IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs

The government is increasing issuance of gas exploration permits in the offshore sector ignoring risks imposed by global decarbonisation

20 September 2021 (IEEFA Australia): Increasing issuance of exploration permits over production, the Australian government has given the green light to oil and gas giants including Santos and Woodside to potentially spend $AUD5.1 billion throughout the next six years on risky offshore exploration activities despite industry-low success rates and the global energy transition, finds a […]

IEEFA Australia: AGL Energy has lost over 70% of its market value, destroying A$12 billion in shareholder wealth

IEEFA Australia: AGL Energy has lost over 70% of its market value, destroying A$12 billion in shareholder wealth

It’s an (expensive) sorry tale when companies ignore shareholders and continue to invest in fossil fuels

22 July 2021 (IEEFA Australia): In failing to realise its early green ambition AGL Energy, one of Australia’s biggest electricity generators and retailers wiped over 70% off its market value in just four years, destroying A$12 billion in shareholder wealth, finds a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). Author […]

IEEFA India: Overestimated LCOEs of coal-fired power plants create a financial bubble

IEEFA India: Overestimated LCOEs of coal-fired power plants create a financial bubble

Massive stranded asset risk detrimentally affects the financial and power distribution sectors

7 July 2021 (IEEFA India): India’s future coal-fired power project pipeline carries a massive stranded asset risk due to the collapse in the average utilisation rate of its coal-fired power fleet leading to an underestimation of financial risk for new projects, finds a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). […]

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 […]

More News and Commentary

IEEFA: High stakes for Asian Development Bank’s ambitious coal power retirement plan
, and

IEEFA: High stakes for Asian Development Bank’s ambitious coal power retirement plan

Implementation challenges could block funding for other equally important high impact clean energy funding strategies

24 September 2021 (IEEFA Asia): In the lead up to the United Nations Climate Change Conference COP26, the Asian Development Bank (ADB) announced a plan to speed up the retirement of high emissions coal-fired power plants in Southeast Asia. This announcement sets the stage for a transformation of the Asian multilateral development bank’s (MDB) role […]

IEEFA Australia: There’s a better way to manage coal closures than paying to delay them
, and

IEEFA Australia: There’s a better way to manage coal closures than paying to delay them

Energy Ministers and the energy industry should reject the ESB capacity mechanism proposal

21 September 2021 (IEEFA Australia): The Energy Security Board’s (ESB) proposal for consumers to pay conventional generators such as coal and gas an extra fee for their capacity, not just the actual power they produce, should be rejected by Energy Ministers at a forthcoming meeting this Friday argues a new report prepared by energy market […]

IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs
, and

IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs

The government is increasing issuance of gas exploration permits in the offshore sector ignoring risks imposed by global decarbonisation

20 September 2021 (IEEFA Australia): Increasing issuance of exploration permits over production, the Australian government has given the green light to oil and gas giants including Santos and Woodside to potentially spend $AUD5.1 billion throughout the next six years on risky offshore exploration activities despite industry-low success rates and the global energy transition, finds a […]

IEEFA Update: Gas is exiting the global energy mix, providing lessons for emerging markets

IEEFA Update: Gas is exiting the global energy mix, providing lessons for emerging markets

Gas price risk is rising for developing markets disrupting expansion plans

An IEEFA paper published earlier this year has proved to be eerily correct with forecasts of doubling or even tripling of the U.S. Henry Hub price and higher and extremely volatile global gas prices. In January 2021, IEEFA warned that over US$50 billion in gas power projects and LNG import facilities were at risk of […]

September 16, 2021 Read More →

Stranded assets pose $135 billion threat to European power by 2040

Bloomberg ($): European power companies could be burdened with debt and face credit rating downgrades if they fail to take action to reach climate neutrality by the middle of the century, a new study says. The European Union plans to reach net zero emissions by 2050 as part of efforts to curb global temperature rises […]

September 9, 2021 Read More →
IEEFA Australia: Comparing global commitment to renewable energy policies, programs and funding

IEEFA Australia: Comparing global commitment to renewable energy policies, programs and funding

Despite some glaring anomalies, much of the world is finally heading in the right direction

It could be easy to become disheartened. Australia is still not focusing on the climate science and need for a rapid decarbonisation of the economy. Instead, the Federal government is bizarrely trying to provide new capacity payment subsidies to extend the life of antiquated coal plants, is providing subsidies in the tens of millions for […]

September 8, 2021 Read More →
IEEFA: In the Philippines, coal’s demise makes way for a renewable energy boom

IEEFA: In the Philippines, coal’s demise makes way for a renewable energy boom

Imported gas lock-in could undermine the economic benefits of a clean energy transition

The Philippines’ energy sector is on the brink of rapid change, with fossil fuels struggling to maintain relevance and a renewable energy industry poised for takeoff. Much of the country’s progress on clean energy and climate goals is due to the exceptional work of local activists applying pressure on policymakers to accelerate the clean energy […]

July 30, 2021 Read More →
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IEEFA: Understanding India’s latest peak power demand record

Ramping up solar will be crucial as peak power demand hits during the day

At around noon on 7 July 2021, India’s instantaneous power demand touched a historic high of 200 gigawatts (GW), beating the previous all-time high of 197GW which had been reached only the day before. These two consecutive days of record-breaking peak demand marked a sharp increase from the high of 190GW in financial year (FY) […]

IEEFA Australia: AGL Energy has lost over 70% of its market value, destroying A$12 billion in shareholder wealth
and

IEEFA Australia: AGL Energy has lost over 70% of its market value, destroying A$12 billion in shareholder wealth

It’s an (expensive) sorry tale when companies ignore shareholders and continue to invest in fossil fuels

22 July 2021 (IEEFA Australia): In failing to realise its early green ambition AGL Energy, one of Australia’s biggest electricity generators and retailers wiped over 70% off its market value in just four years, destroying A$12 billion in shareholder wealth, finds a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). Author […]

German coal-fired power plant shut down after only six years

Tagesschau: The coal-fired power plant Moorburg in Hamburg will go offline today and will be shut down for good. The operating company Vattenfall has not produced any electricity there since the end of 2020. At that time, the company stopped operating the power plant and, according to its own statements, has kept it in reserve […]

July 9, 2021 Read More →