This report analyses two inflection points critical to understand the relative competitiveness of coal power.
The first inflection point considered when new investments in renewable energy (either onshore wind, offshore wind or utility-scale solar PV) are cheaper than new coal.
The second inflection point considered when new investments in renewable energy cost less than the operating cost of coal power.
Coal has long been considered the least-cost option for power generation throughout the world. This narrative is quickly changing as a confluence of factors are disrupting coal’s pre-eminence. Most notably, low-cost renewable energy, which will soon be cheaper to build than to run coal plants. Policymakers need to stop new investments in coal power immediately and redesign power market regulation to minimise stranded asset risk and accelerate the transition to a low carbon economy.