Fitch Solutions said that the recently announced investment plans of the Asian Development Bank (ADB) and Prudential to acquire existing Asian coal-fired power plants and retire early, which may accelerate Southeast Asia’s transition to green energy.

"From the perspective of the receiving market, even the governments of Indonesia and Vietnam, which traditionally rely on the coal market, have begun to show more and more willingness to abandon coal in their recent energy strategies. From an international perspective, We have seen an increase in green financing mechanisms, especially those from more developed countries, and promote a'green recovery' after the pandemic." It said in a report, adding that they are "cautiously optimistic." "Make it successful.

However, its potential depends on several factors, such as parallel support for the establishment of alternative and reliable power generation sources, sufficient to have a significant impact on the entire power sector and provide a clearer range of coal-fired power plant assets to qualify for the program.

"The plan may target newer coal-fired power plants whose operating shelf life will be extended for decades to achieve their goals, while the'early shutdown' will still take 10 to 15 years. In addition, the plan will be fine-tuned to It will take some time before an effective mechanism can be expanded to a scale that can significantly change the power structure, especially considering that many of its target countries are emerging markets, and it is also actively trying to expand its power capacity to meet the growing demand in the next ten years. Support economic growth." Fitch added.

Financial partners in these programs include HSBC, BlackRock and Citigroup. It is expected to provide funds through a combination of equity, debt and preferential financing through public-private partnerships.

Keywords: energy transition, foreign engineering project information

At present, in the pilot phase, some details of the project have not yet been finalized. Prudential’s preliminary estimates show that its cost range is between $1 and 1.8 million per MW, which means it will reach at least billions of dollars. "There are also questions about the potential role of carbon credits, potential conflicts of interest, moral hazard, and whether existing coal-fired power plant owners will accept the plan. It is expected that these will be finalized and announced at the UN Climate Change Conference in November, and Hope to make the first transaction in 2022," Fitch said.Editor/Baohongying