Stranded Coal Power Assets in China: A Case Study of Jilin Province

ABSTRACT

This article conducts the first provincial case study on the effect of environment-related risks on coal-fired power plants in Jilin, China, which creates “stranded assets”. Using power capacity expansion model and project evaluation model, the article first quantifies the rational coal power capacity during 2016–2020. Then, we calculate the value of stranded assets. The estimated scale of excess coal power capacity by 2020 ranges from 8,190 MW to 18,480 MW. The total value of stranded assets will decline over time under the different scenarios. Finally, policy implications for policymakers on power market reforms are proposed.

KEY WORDS:

• coal power
• environmental risks
• policy implications
• stranded assets

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Additional information

Funding

The work reported in the article is supported by the National Natural Science Foundation of China [71673085], the Fundamental Research Funds for the Central Universities [2018ZD14] and the 111 Project [18021]. We also appreciate the funding by Energy Foundation China to partly support the work in this article. The usual caveats apply;111 Project [B18021];