Page 9 - AsiaElec Week 24 2021

AsiaElec COAL-FIRED GENERATION AsiaElec

China abandons 73 GW of coal

capacity in last five years

CHINA CHINA has abandoned 4.5 times more coal- was 5:1.
fired generating capacity across the world since In South Asia, the failure rate of cancelled to
2017 than it has built, amounting to 73 GW, sug- constructed capacity is 4:1. While the region has
gesting that appetite for coal power has fallen constructed the most coal projects after China,
considerably. it is also responsible for 40% of abandoned Chi-
Research from the Centre for Research for na-backed coal capacity globally since 2017.
Energy and Clean Air (CREA) showed that Since 2016, the top 10 banks involved in
weakening economic competitiveness, public global coal financing were all Chinese, and
opposition, environmental and social impact around 12% of all coal plants operating outside
concerns and overcapacity in recipient coun- China can be linked to Chinese banks, utilities,
tries had caused the cancellation of 73 GW of equipment manufacturers and construction
capacity. firms, CREA said.
A huge number of coal plants with 80 GW of Over 120 GW of coal-fired capacity operat-
capacity are still in the pipeline, mainly in Asia, ing today can be linked to China. Between 2000
but issues around air pollution and CO2 emis- and 2017, Chinese firms invested approximately
sions intensity, as well as changing policy, could $115bn in overseas power plants.
threaten their realisation. The report concluded that the drop in Chi-
The report found that in 2017, Chinese-back nese-backed coal projects entering construction
coal projects in the planning and permitting was driven by host country policies and trends.
stage totalled 138 GW. Since then, almost half of While policy changes around coal have
this capacity (73 GW) has either been shelved been a good start, recipient countries must also
or cancelled – this is 4.5 times more than the 18 send clear market signals around their interest
GW of capacity that entered construction over in developing and backing renewable energy
the same period. technologies.
Total Chinese-backed capacity under con- For China, the government must follow
struction has decreased from 38 GW in 2017 to through on the commitments to green energy
27 GW at the start of 2021. contained in its Belt & Road Initiative (BRI).
An estimated 290mn tonnes per year of car- Beijing should shift investments towards renew-
bon emissions have been avoided by their can- ables energy and avoid coal projects that have no
cellation, CREA said. assurance of returns.
The highest proportion of coal capacity aban- The shrinking market for new coal outside
doned was in Africa and the Middle East, where China means any potential reward from hanging
the ratio of plants cancelled to that being built on to high-emissions projects is fading rapidly.™

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