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Estimating stranded coal assets in China's power sector

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  • Zhang, Weirong
  • Ren, Mengjia
  • Kang, Junjie
  • Zhou, Yiou
  • Yuan, Jiahai

Abstract

China has suffered overcapacity in coal power since 2016. With growing electricity demand and an economic crisis due to the Covid-19 pandemic, China faces a dilemma between easing restrictive policies for short-term growth in coal-fired power production and keeping restrictions in place for long-term sustainability. In this paper, we measure the risks faced by China's coal power units to become stranded in the next decade and estimate the associated economic costs for different shareholders. By implementing restrictive policies on coal power expansion, China can avoid 90% of stranded coal assets by 2025.

Suggested Citation

  • Zhang, Weirong & Ren, Mengjia & Kang, Junjie & Zhou, Yiou & Yuan, Jiahai, 2022. "Estimating stranded coal assets in China's power sector," Utilities Policy, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:juipol:v:75:y:2022:i:c:s0957178722000170
    DOI: 10.1016/j.jup.2022.101352
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    References listed on IDEAS

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    Cited by:

    1. Park, Seong-Ju & Kim, Ju-Hee & Yoo, Seung-Hoon, 2023. "Utilization of early retiring coal-fired power plants as a cold reserve in South Korea: A public perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    2. Xizhe Yan & Dan Tong & Yixuan Zheng & Yang Liu & Shaoqing Chen & Xinying Qin & Chuchu Chen & Ruochong Xu & Jing Cheng & Qinren Shi & Dongsheng Zheng & Kebin He & Qiang Zhang & Yu Lei, 2024. "Cost-effectiveness uncertainty may bias the decision of coal power transitions in China," Nature Communications, Nature, vol. 15(1), pages 1-12, December.
    3. Li, Yanbin & Zhao, Ke & Zhang, Feng, 2023. "Identification of key influencing factors to Chinese coal power enterprises transition in the context of carbon neutrality: A modified fuzzy DEMATEL approach," Energy, Elsevier, vol. 263(PA).

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