Subsidies

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 Pakistan: Coal gasification and liquefaction harmful to economy

IEEFA Pakistan: Coal gasification and liquefaction harmful to economy

There is no second life for coal

6 May 2021 (IEEFA Pakistan): Pakistan’s intention to use coal for power production through gasification and liquefaction technologies is likely to cause harmful economic impacts and a subsequent increased reliance on fossil fuels in Pakistan, finds a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). Pakistan’s intention to explore a second […]

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years

Coal, gas set to become biggest losers as renewable generation climbs quickly

March 31, 2021 (IEEFA) — The speed and scope of the energy transition to renewables will pick up pace over the next two to three years, according to the Institute for Energy Economics and Financial Analysis’ U.S. Power Sector Outlook 2021. Solar and battery storage adoption is enjoying almost exponential growth, and wind and solar […]

IEEFA: Folly of wasting Australian taxpayer cash on Beetaloo gas 

IEEFA: Folly of wasting Australian taxpayer cash on Beetaloo gas 

Australia’s economic recovery from COVID-19 heading to a 'dead end'

The Australian Government’s obsession with wasting taxpayers’ money on gas is leading Australia’s economic recovery from COVID-19 to a “dead end”, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). The report finds that all indicators show Australian consumers and the country’s main export customers will use less gas […]

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 U.S.: Virginia coal plant’s future isn’t bright: preparation for  transition should commence now

IEEFA U.S.: Virginia coal plant’s future isn’t bright: preparation for transition should commence now

Virginia City Hybrid Energy Center (VCHEC), one of the newest in U.S., risks closure due to market forces

December 16, 2020 (IEEFA)—Retiring the Virginia City Hybrid Energy Center (VCHEC) will bring unnecessarily abrupt economic hardship to Wise County if state and local officials do not begin to plan now for a transition, concludes a report published today by the Institute for Energy Economic and Financial Analysis. The 8-year-old coal-fired power plant, owned by […]

IEEFA: European gas pipeline companies mislead investors by underreporting CO<sub>2</sub>

IEEFA: European gas pipeline companies mislead investors by underreporting CO2

Reporting loophole means midstream operators aren't following the same guidelines as upstream or downstream sellers

December 14, 2020 (IEEFA) — European pipeline companies are using a loophole to market themselves as low-carbon businesses and avoid reporting on the climate effects of the natural gas they transport, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). The report, Hiding in Plain Sight—European Gas Pipeline Companies’ […]

IEEFA Philippines: NPC-SPUG shift can drive savings to P13.5 billion per year

IEEFA Philippines: NPC-SPUG shift can drive savings to P13.5 billion per year

Shift from diesel to renewables can save electric coops P1.4-1.7 billion over next decade

3 December 2020 (IEEFA Philippines): The record-breaking disasters in the Philippines this year highlight the potential for renewable energy to power small island and isolated power grids and save the country up to P13.5 billion per year, and electric cooperatives an additional P1.4 to P1.7 billion over the next decade, finds a new report from […]

IEEFA Australia: Snowy Hydro gas plant expansions likely to be fuelled with taxpayer funds

IEEFA Australia: Snowy Hydro gas plant expansions likely to be fuelled with taxpayer funds

Gas is a poor bet, and coupled with the financially challenged Snowy Hydro 2.0, is a sure stranded asset maker

19 November 2020 (IEEFA Australia): Careful scrutiny of Snowy Hydro’s latest financial results show the company is heading towards an uneasy reliance on government and taxpayer subsidies post 2021, throwing into serious doubt the government’s heady push for further gas expansion in a declining market, finds a new briefing note by the Institute for Energy […]

IEEFA Indonesia: DME coal gasification project could lose US$377 million annually

IEEFA Indonesia: DME coal gasification project could lose US$377 million annually

Investing in DME doesn’t make economic sense

10 November 2020 (IEEFA Indonesia): A proposed coal gasification plant for Sumatra could lose US$377 million dollars annually, finds a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). Author and energy finance Analyst Ghee Peh says that with the COVID-induced economic contraction, this is not the time to be subsidizing a […]

and November 10, 2020 Read More →

More News and Commentary

Over 500 organizations say carbon capture hinders energy transition

Canada’s National Observer: Investment in carbon capture technology will hinder Canada’s transition away from fossil fuels and exacerbate the effects of climate change, says a new letter co-signed by hundreds of organizations. Over 500 environmental groups and other organizations from Canada and the U.S. put the piece together, which ran as a full-page ad in […]

July 21, 2021 Read More →

Geothermal-rich Kenya beginning to export expertise across continent

Bloomberg ($): When Kenya opened the Olkaria power plant four decades ago, it was considered more research project than commercial venture. Located in Hell’s Gate National Park, a barren zone of volcanic rock permeated by sulfurous gases and populated mostly by warthogs and zebras, the facility generated electricity using steam rising from deep in the […]

July 19, 2021 Read More →

Ground broken on $500 million solar steel rail mill in Colorado

Pueblo Chieftan: Gov. Jared Polis joined EVRAZ North America in Pueblo Wednesday to break ground  on a $500 million long rail mill that will employ about 300 people when complete, and have the capability of make ¼-mile long sections of rail.  Construction on the state-of-the art, ½-mile long rail building will employ about 800 construction […]

July 15, 2021 Read More →

Africa records almost 2GW of large-scale solar plans since June

PV Magazine: The 540 MW of solar generation capacity and 1.14 GWh of energy storage awarded to Norwegian developer Scatec to help keep the lights on in South Africa recently is the biggest project award of what trade body the Africa Solar Industry Association (AFSIA) has described as “an unprecedented series of large scale” PV […]

July 15, 2021 Read More →

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 →

Oil- and coal-rich Colombia passes energy transition law

Argus Media ($): Colombia has enacted an energy transition law to promote investment in hydrogen, renewable energy and sustainable transport. The law, signed by President Ivan Duque yesterday, recognizes green and blue hydrogen as renewable energy eligible for reduced income tax, VAT and tariff exemptions and accelerated depreciation. The new legislation also provides a legal […]

July 13, 2021 Read More →

AGL plans shutdown of 200MW gas unit, replacement with big battery

Renew Economy: AGL Energy is to mothball one of the four units at the Torrens B gas generator in South Australia, as traditional fossil fuel generators struggle in the face of the rapid transition to wind and solar and the switch from baseload generation to flexible capacity. AGL said falling spot and forward wholesale electricity […]

July 7, 2021 Read More →

Lumea announces plans for first unsubsidized big battery in Australia

Renew Economy: Lumea, the commercial offshoot of transmission company TransGrid, has announced plans for a 300MW big battery in Melbourne that it is describing as a “first of its kind” in Australia because it will be the first to be fully financed without using government funding or contracts. The 300MW battery at the Deer Park […]

July 6, 2021 Read More →

Vattenfall starts construction on first subsidy-free offshore wind farm

ReNews.biz: Vattenfall has started construction of the 1500MW Hollandse Kust Zuid offshore wind farm off the coast of the Netherlands. The Swedish developer said that the first vessel transporting foundations had departed today for the construction site. Construction is starting with the installation of monopile foundations, each of which have been designed specifically for the […]

July 6, 2021 Read More →
IEEFA: Gas power plants assuming a constant capacity factor are being financially overvalued
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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 […]