Full Title: Unlocking Coal Contracts: Pathways to Decarbonizing Long-Term Coal Power Purchase Agreements
Author(s): Rachit Kansal, Dhroovaa Khannan, and Juan Vial
Publisher(s): Rocky Mountain Institute (RMI)
Publication Date: July 23, 2023
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A rapid global transition from coal to clean power is critical for strong economic growth and ambitious climate action. However, while there has been significant momentum for such a transition, over 93 percent of coal power is shielded from competition — much of which sits under coal power purchase agreements (PPAs). This report shares specific solutions to decarbonize coal PPAs and scale those solutions effectively. Unlocking these contracts could help stakeholders realize the many benefits of the clean energy transition — lower costs, higher earnings, more jobs, and better health outcomes.
These solutions were developed through detailed financial analysis of a specific, representative Indonesian coal PPA and in consultation with a law firm with in-country expertise. Such a focused approach was needed as decarbonizing PPAs involves integrating legal, policy, financial, and technical considerations — all while managing stakeholder relationships