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Summary
- A new report suggests that it is possible to close more than 800 coal-fired power plants in emerging economies and replace them with solar energy profitably.
- Achieving net-zero emissions by 2050 requires a complete coal phase-out by 2040, according to the International Energy Agency.
- Transitioning away from coal faces challenges such as large debts and lengthy power purchase agreements.
Of the world’s coal-fired power generation capacity, 10% is scheduled to be decommissioned by 2030, but this number could increase if governments, investors and philanthropists are willing to identify and invest in opportunities, according to a new report released by the IEEFA.
Specifically, there is the opportunity to shut more than 800 coal-fired power plants in emerging economies and profitably replace them with solar energy, starting from the end of the current decade.
The report suggested that the coal-to-clean transition can take place without extensive government subsidies as there will be opportunities for private companies to make profit.
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Currently, around 15.5 billion tonnes of carbon dioxide is generated every year by 2TW of coal-fired power. The International Energy Agency stated that in order to achieve net-zero emissions by 2050, a complete coal phase-out will be required by 2040.
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Nevertheless, the IEEFA identified 800 coal-fired power plants in developing countries, 600 of which were built 30 years or more ago, that have paid off debts and are not tied down by lengthy PPAs. Such plants could feasibly be decommissioned.
Read the full post at Energy Monitor.
