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Stranded coal power-I: Good or bad policy making?
Sep 21:
The fact that a significant portion of coal-fired power plants are stranded assets is now a foregone conclusion
8But the government is fighting tooth and nail to ensure that they are not stranded. It has been found that a number of government interventions – in the form of public finance, subsidies and policy postponements are encouraging new capital investment in coal fired power, which might otherwise be considered uneconomic, during the project appraisal, preparation and construction stage.
8Is this attempt good or bad policy?
8Clearly, attempts to keep such stranded capacity alive will make the transition to a low carbon economy that much more difficult.
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8But the government is fighting tooth and nail to ensure that they are not stranded. It has been found that a number of government interventions – in the form of public finance, subsidies and policy postponements are encouraging new capital investment in coal fired power, which might otherwise be considered uneconomic, during the project appraisal, preparation and construction stage.
8Is this attempt good or bad policy?
8Clearly, attempts to keep such stranded capacity alive will make the transition to a low carbon economy that much more difficult.
Click on Reports for more
