Energy Transition

Early Coal Retirement Economics in Java

Plant-level modelling of the cost of retiring Java's coal fleet early, and evaluation of the instruments proposed to finance it.

OngoingEnergy TransitionCilacap, Central Java

About the project

Java hosts the bulk of Indonesia's coal capacity, much of it recently built and contracted under long-dated take-or-pay agreements. Early retirement is technically feasible but financially complex.

The project builds a plant-level model of retirement costs and tests whether transition credits, refinancing facilities and concessional capital can close the gap.

Outputs

Plant-level retirement cost model

Model

Transition finance instrument assessment

Report