Sustainability Economics, an international organization specializing in comprehensive net-zero solutions for high-emission industries, has partnered with SUCOFINDO, an inspection state-owned company in Indonesia. This collaboration aims to accelerate the transition of coal-fired power plants (CFPPs) to clean energy sources across Indonesia using the innovative Clean Energy Mechanism (CLEM) designed to make such transitions profitable.
Coal-fired power generation is a significant source of global carbon emissions, particularly in Asia, where many CFPPs are relatively young, averaging less than 15 years old. CLEM offers a practical, data-driven solution tailored to the specific needs of CFPP asset owners, power purchasers, and policymakers. The approach simplifies and scales clean energy transitions, making them practical and profitable.
CLEM’s vision is to make energy transitions not only feasible but also financially rewarding for CFPP asset owners and financiers. By leveraging a data-driven, customized approach, CLEM provides strategic clean energy transition planning that ensures profitability while facilitating the process.
The key outcomes of the CLEM initiative include a data-driven assessment of the technical and financial conditions of existing coal-fired power plants (CFPPs). It involves developing collaborative, location-specific transition plans with input from CFPP owners, power purchasers, financial institutions, and policymakers.
The initiative also identifies the financial implications for CFPP owners during the transition, models potential clean energy sources and associated costs based on regional policies, and devises strategies to secure transition financing through innovative global financial instruments and partnerships.
Additionally, CLEM accelerates the transition by utilizing a blockchain-driven marketplace to source appropriate clean energy technologies. It provides detailed financial analyses, covering transition financing options and credit cash flows for equity and debt stakeholders, and demonstrates the profitability of various transition scenarios for CFPP owners and financial institutions.
(Source: AsiaOne)
