This paper estimates the potential scale of stranded assets in the coal power sector in China under different policy scenarios. A number of factors are putting significant pressure on the coal-power sector: a recent investment bubble in new capacity, structural slowing in electricity demand growth, upcoming moves to liberalize electricity markets and introduce a carbon market, and continued support for renewable and low-carbon sources of electricity. Stranded assets in the Chinese coal-fired power sector are estimated at 90 billion USD2015 under the current policy trajectory (NDC-Style Scenario). This situation threatens to increase the political economy challenges of China’s electricity sector transition to a low-carbon system. This situation is not unique to China: other countries will also face coal-sector stress due to the competitiveness of renewables, and therefore managing existing coal power capacities needs to move to the forefront of climate and energy policy efforts.
Links:
[1] http://admin.indiaenvironmentportal.org.in/reports-documents/coal-transitions-china%E2%80%99s-power-sector-plant-level-assessment-stranded-assets-and
[2] http://admin.indiaenvironmentportal.org.in/category/author/thomas-spencer
[3] http://admin.indiaenvironmentportal.org.in/category/author/nicolas-berghmans
[4] http://admin.indiaenvironmentportal.org.in/category/author/oliver-sartor
[5] http://admin.indiaenvironmentportal.org.in/category/publisher/institute-sustainable-development-and-international-relations-iddri
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/coal
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/power
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/china
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/electricity
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/low-carbon-economy
[11] http://admin.indiaenvironmentportal.org.in/category/thesaurus/carbon-market