Decades-long deals chain Asia to coal-fired power

Southeast Asian contracts have 9-18 years left on average, writes Sudarshan Varadhan

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A 2023 photo of a girl getting water from a tap at home with Indonesia's Suralaya coal-fired power plant as the backdrop. AFP

(AFP)

Decades-long coal-fired power purchase contracts are slowing the transition to cleaner energy sources in Asia, leading utilities to burn more coal even when wind and solar power are available, according to climate researchers and renewable energy advocates.

Rising dependence on coal for power generation in countries such as Indonesia and Vietnam is a major obstacle to global efforts to combat climate change, exacerbated by stalled funding for renewable energy projects from rich countries.

Southeast Asia has 50% to 100% of coal-fired power capacity locked in purchase agreements with about nine to 18 years left on average, according to data from the Powering Past Coal Alliance (PPCA), a coalition of governments, businesses and other organisations pushing for coal use to be phased out.