Governments and utility operators across Asia are challenged with balancing pressures to decarbonise while continuing to meet growing electricity demand with affordable power. While coal remains the dominant source of power generation for many nations in the region today, it is a major source of carbon emissions.

Based on media reports, financial institutions such as the Asian Development Bank, HSBC and Citi, asset managers like BlackRock and insurers such as Prudential are studying a plan to accelerate the retirement of Asia’s coal-fired power plants.

Identifying the right decarbonisation path will require meticulous planning, market analysis, evaluations of multiple sustainable technology alternatives, cost economics and return on investment certainty within a tangible period. In mitigating project risks, socioeconomic and regulatory matters will need to be addressed early. Equally important will be supportive government regulations and policies as they can help to accelerate the alternative use of coal plant sites, manage upstream supply chain transitions and facilitate access to funding necessary for repurposing coal power generation towards more sustainable low carbon power production.

For successful coal retirement programs, key considerations for repurposing coal assets will need to be thoroughly understood. A priority will be to understand the criteria for selecting coal plants for repurposing. Other considerations will include investigating potential technology alternatives to uncover the best mix of technologies for each facility, managing offtake requirements, and minimising stakeholder impacts.

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