IDEAS home Printed from https://ideas.repec.org/p/pdb/report/37.html
   My bibliography  Save this paper

Scopes for Early Retirement of Coal-Based Power Plants: What Strategies Can be Adopted?

Author

Listed:
  • Khondaker Golam Moazzem
  • Shiyan Sadik

Abstract

It is evident that coal has been detrimental to a sustainable future, and the Bangladesh government has decided to make a transition from coal to an alternative fuel source. However, the transition pathway from coal to an alternative is not without challenges. The early retirement of coal-based power plants is an option that has been researched at theoretical and empirical levels. This study focuses on the abandonment decision of a coal plant from the economic perspective and discusses the necessary guidelines that the government can adopt as long-term plan. Based on the data analyses and results on a domiestic coal power plant, it appears the decision of abandoning coal plants for the futuristic approach can be justified. It reveals that with the estimated value of the future cash flow, the financial investors can decide whether to abandon a project or sustain it. The adopted approach in the study for calculating the abandonment value based on different variables can be applied to other coal plants which are in operation in the country. Moreover, this framework can be used to apply to the coal power plants which are in the planning or under construction stages.

Suggested Citation

  • Khondaker Golam Moazzem & Shiyan Sadik, 2023. "Scopes for Early Retirement of Coal-Based Power Plants: What Strategies Can be Adopted?," CPD Report 37, Centre for Policy Dialogue (CPD).
    • Handle: RePEc:pdb:report:37
    as

    Download full text from publisher

    File URL: https://cpd.org.bd/resources/2023/08/Scopes-for-Early-Retirement-of-Coal-Based-Power-Plants.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luis M. Abadie & Mikel González-Eguino & José M. Chamorro, 2010. "Optimal Abandonment of Coal-Fired Stations in the EU," Working Papers 2010-07, BC3.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rohlfs, Wilko & Madlener, Reinhard, 2010. "Valuation of CCS-Ready Coal-Fired Power Plants: A Multi-Dimensional Real Options Approach," FCN Working Papers 7/2010, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    2. Abadie, Luis Maria & Heres, David R., 2011. "Electricity Prices and Generation Costs in European Futures Markets with Implications for Spain/Precios de la electricidad y costes de generación en los mercados de futuros europeos: implicaciones par," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 561-574, Agosto.

    More about this item

    Keywords

    Coal-Based Power Plants; Bangladesh;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pdb:report:37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Avra Bhattacharjee (email available below). General contact details of provider: https://edirc.repec.org/data/cpdddbd.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.