Estimated Stranded Assets in the Electricity Sector in the Southeast Asian Region

Achieving the long-term goals of the Paris Agreement requires a rapid fossil fuel phase-out, mainly of coal power generation. However, the Southeast Asian region has been increasing reliance on coal power, which can be associated with higher stranded costs. This chapter conducted scenario analyses to estimate new installations and stranded assets in the electricity sector that align with the Paris Agreement in this region. The results showed that fossil fuel capacity stranding and new capacity installations must be around 62.8–93.2 GW (USD 224–272 billion) and 590–672 GW (USD 1.9–2.0 trillion) from 2021 to 2050, respectively, to achieve Nationally Determined Contributions and net-zero emissions. The magnitude of stranded assets would vary by technological availability. Stranded assets and new investment requirements for renewable energy become higher unless carbon capture and storage systems are commercially available. High gas prices, which undermine new investments in gas power plants, potentially reduce stranded assets but increase new installation costs for other technologies.