Coal lock-in hinders ADB’s program to retire coal plantsIn the “Coal Lock-In in Southeast Asia” report, the IEEFA defined coal-lock in as a state of an energy system where high capacities of coal-fired power plants are present in the energy system, backed by long-term financial agreements that cannot prematurely end. MANILA, Philippines — Coal lock-in in Indonesia, Vietnam and the Philippines is hindering the successful implementation of the Asian Development Bank’s (ADB) program to retire coal-fired power plants, according to a recent report by consultancy firm Institute for Energy Economics and Financial Analysis (IEEFA). It aims to retire almost half of the coal-fired power plants in Indonesia, Vietnam, and the Philippines. “IEEFA has long been focused on the issue of coal lock-in, particularly how the reliance on long-term power purchase agreements (PPAs) to support coal power investments restricts the ability of regional governments to shed high-emissions coal assets without severe financial damage,” Isaad said. Given the scale of coal pipelines in these countries, coal lock-in will only get worse if business continues as usual, the author said.

Source: Philippine Star December 25, 2021 03:16 UTC