Financing Managed Coal-Fired Power Plant Phaseout in Thailand

Limiting global warming to no more than 1.5°C requires a substantial reduction in fossil fuel use — particularly the phaseout of coal-fired power generation, one of the most carbon-intensive and environmentally damaging energy sources.

As renewable energy costs continue to decline and climate regulations evolve, coal power is becoming progressively less economically viable. This trend increases the risk that coal-fired power plants may become stranded assets sooner than previously anticipated.

This new report by CFNT examines the feasibility of early retirement for a coal-fired power plant and proposes financial structuring options to support a just and practical transition for key stakeholders. The analysis aims to support sound economic decision-making by operators and investors, reduce long-term financial risks associated with stranded assets, and contribute to Thailand’s greenhouse gas reduction targets under the NDC 3.0 framework.

Key Insight: 

– Thailand’s current situation and the necessity of early retirement of coal-fired power plants

– Lessons from other countries on the early retirement of coal-fired power plants

– Workable financing model for Thailand’s coal-fired power plants