Page 13 - AsiaElec Week 07 2021

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average, led by Total’s $1.98bn acquisition COAL Also in November 2020, the Philippines’
of Adani Green Energy, according to Department of Energy proposed a
GlobalData’s deals database. Bangladesh leads coal moratorium on new coal power plants which,
A total of 22 power industry deals worth according to analysis by GEM, could lead to
$2.9bn were announced for the region in power capping in South and 9.6GW of cancellations.
January 2021, against the 12-month average of Later in December, on the fifth anniversary
36 deals. Southeast Asia of the Paris Agreement, Pakistani Prime
Of all the deal types, M&A saw most Minister Imran Khan announced that the
activity in January 2021 with 18 transactions, Many South and Southeast Asian countries country would not construct any new coal
representing an 81.8% share for the region. have followed Bangladesh’s footsteps in power plants, though the real-world impact
In second place was venture financing with radically reconsidering their coal power of this grandiose announcement has been
four deals capturing an 18.2% share of the projects in the face of new economic realities questioned.
overall deal activity for the month. following the spread of coronavirus. Adding in proposed project cancellations
In terms of value of deals, M&A was the According to a new analysis from Global in Indonesia, GEM estimates that the coal
leading category in Asia-Pacific’s power Energy Monitor (GEM), four of the region’s power pipeline in South and Southeast Asia’s
industry with $2.79bn, followed by venture largest emerging economies – Bangladesh, four major emerging economies may have
financing deals totalled $110.02m. Indonesia, the Philippines, and Vietnam – dropped by as much as 62GW in 2020, the
The top five power deals accounted for plan to cancel nearly 45 gigawatts (GW) of report said.
92.7% of the overall value during January coal power in 2020, reports China Dialogue. Not only that, prospects for a revival of
2021. It started in June 2020 with Bangladesh coal development plans in 2021 have also
The combined value of the top five power after Power, Energy and Mineral Resources been limited by announcements from major
deals stood at $2.69bn, against the overall Minister Nasrul Hamid announced that the coal financiers in South Korea and Japan of
value of $2.9bn recorded for the month. government was planning to “review” all but new restrictions on coal power investments
The top five power industry deals of three of the country’s under-development coal beyond their borders.
January 2021 tracked by GlobalData were: plants, capping coal power capacity at 5GW.
1) Total’s $1.98bn acquisition of Adani The announcement put doubt on planned
Green Energy coal plants totalling 23GW.
2) The $537.94m acquisition deal with By November 2020, Bangladeshi media HYDROGEN
SUEZ NWS by SUEZ (Asia) reported that the plan to scrap most of the
3) CITIC Pacific Special Steel Holdings’ country’s planned coal was awaiting approval JERA, Petronas to promote
$62m acquisition of Shanghai Electric Group from the prime minister, the report added.
Steel Tube A month later, details of Vietnam’s draft LNG, improve ammonia and
4) The $61.34m acquisition of Noida Power Power Development Plan, which is due to
by Eminent Electricity Distribution come into force next year, became public. hydrogen supply chains
5) Shenzhen Expressway’s venture The draft plan proposed cancelling seven
financing of Mulei County Qianzhi Energy coal plants and postponing six others until Japan’s JERA has signed a memorandum of
Development for the 2030s, by which point it is highly unlikely understanding (MoU) with Malaysia’s national
$44.7m. they will go ahead. The 13 plants represent oil and natural gas company Petronas,
almost half of Vietnam’s planned coal power agreeing to co-operate in the decarbonisation
development. sector

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