ADB studying feasibility of acquiring and retiring SE Asian coal plants

• 3 years ago (2021-08-31)
• David Flin

Asia 892 Coal 296

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The Asian Development Bank (ADB) has announced that it is in the final stages of conducting feasibility studies on coal plant acquisition in three Southeast Asian countries, Indonesia, Philippines, and Vietnam.

In a statement, ADB said: “ADB is finalising pre-feasibility studies, consisting of initial system level analysis, plant level modelling, and regulatory and policy review in Indonesia, the Philippines, and Vietnam. This will be followed shortly by an in-depth feasibility analysis. Throughout the process, ADB is collaborating with its longstanding and valued partners and other local stakeholders to determine the best path forward for the energy transition mechanism in these three countries.” ADB confirmed that it was looking into investors acquiring coal-fired plants, retiring them, and replacing them with renewable energy sources.

In early August, Reuters reported that Prudential UK, Citi, HSBC, and BlackRock Real Assets have plans to hasten the closure of coal-fired plants in Asia in a bid to lower carbon emissions. The group aims to create public-private partnerships to “buy out the plants and wind them down within 15 years.”

ADB has allotted around $1.7 million for feasibility studies in Indonesia, Philippines, and Vietnam to estimate the costs of early plant closures, and to identify which assets could be acquired.