Show threadJoseph Lim Sep 19, 2024
Contd: "πŸ‡ΉπŸ‡­ #PPA contains another #guarantee mechanism known as #takeorpay. #Egat is obliged to buy #electricity fr #powerplants even tho πŸ‡ΉπŸ‡­ has too much #energyreserves in the #nationalgrid.. w generous PPAs, profits of pwr plants rise sustainably while those of Egat move in e opposite direction.. #IEA recs alternative #powermarket mechanisms.. generous financial obligations such as Ft & purchase-guaranteed clauses, like e AP & take-or-pay clauses, must be removed, if not reduced" #GoodGovernance
Henri HornMay 8, 2023

The #WorldBank sector note on energy for assessment on #ParisAlignment points out that fossil power plants become #StrandedAssets as they are displaced by cheaper renewables and see capacity factors decline. Unfortunately Power Purchase Agreements often have #TakeOrPay clauses that keep fossil plants running even when there is no need, leading to #LockInEffect and less investment in renewables.

https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099825304072326685/idu0c3637e5e09852043de09ff80cd898f92b2df

Energy and Extractives - Sector Note on Applying the World Bank Group Paris Alignment Assessment Methods

This Sector Note outlines the sector-specific issues for applying the World Bank Group (WBG) Paris Alignment (PA) assessment methods to operations with activities in the .

World Bank