Page 4 - AsiaElec Week 01 2021

AsiaElec COMMENTARY AsiaElec

2021 set to be a poor

year for coal in Asia

Bangladesh, the Philippines, Vietnam and Indonesia have slashed their coal project pipelines
by 62 GW as investors back out and coal proves a risky proposition, writes Richard Lockhart

GLOBAL BANGLADESH, the Philippines, Vietnam and In the Philippines, the Department of Energy
Indonesia have announced plans to abandon up (DOE) unveiled plans in November for a mora-
WHAT: to 62 GW of planned coal-fired power projects in torium on new coal plant permits. If approved,
Bangladesh, the 2021, leaving just 25 GW of coal capacity on the up to 9.6 GW of capacity could be shelved.
Philippines, Vietnam and drawing board for Asia outside China. Pakistan Prime Minister Imran Khan
Indonesia plan to cancel The 25-GW project pipeline is 80% lower announced a similar moratorium in December.
62 GW of coal power than the 125.5 GW planned in 2015, according Meanwhile, a preliminary draft of Vietnamʼs
projects in 2021 to a report from Global Energy Monitor (GEM). next energy plan, known as PDP 8, proposes that
Just 10.1 GW of this 25 GW in the four coun- the country should cancel or postpone half of its
WHY: tries has secured financial closure, suggesting planned coal capacity, totalling 17.1 GW. The
Coal is no longer a cheap, that the coal project pipeline could shrink even final plan will be released in early 2021.
convenient source of further in 2021 as financing for coal power pro- Finally, Indonesia’s Energy Ministry said
power jects becomes increasingly challenging, GEM it night cancel or postpone up to 15 GW in its
said. next energy plan (RUPTL 2021–2030), although
WHAT NEXT: The figures could put an end to any hopes the about 2.3 GW will be renewable projects.
Investors will continue coal industry in Asia had of a rebound in 2021 Before 2020, Southeast Asia was seen as a
to exit coal, while coal after a poor year in 2020. major growth area for coal, alongside China.
cannot compete on the Coal had always been seen by governments However, falling levels of demand growth and
cost of wind and solar until 2020 as a cheap, short-term fix to meet- fewer coal approvals, caused by the COVID-19
ing power demand. However, falling costs for pandemic in 2020, coupled with tightened
renewables and worries about fossil fuels and financing for coal plants and decreasing costs
climate change amongst investors and gov- for solar and wind, are prompting many govern-
ernments mean that coal power is unlikely to ments in the region to move away from coal, at
recover in the years ahead. least partly.
These countries’ behaviour in 2020 follows
Cancellations on from India’s decision in 2019, which saw New
The Bangladesh Energy Ministry has finalised Delhi shelve 47.4 GW of coal power in 2019, and
plans to cancel all coal plants not currently under another 28.4 GW in 2020.
construction, effectively removing 22.9 GW of India’s coal power pipeline now stands at 30
planned coal capacity. GW, compared with 238.2 GW in 2015.

P4 www. NEWSBASE .com Week 01 06•January•2021