State of Transition

The report examines the role of state-owned power companies (SPCs) in emerging markets and developing economies (EMDEs), noting they control approximately 50% of global power station capacity. Through four case studies, it explores specific transition elements: Eskom (South Africa) on just energy transition (JET), NTPC (India) on renewable energy deployment, EVN (Viet Nam) on grid integration, and PLN (Indonesia) on early coal retirement. Key findings highlight that while SPCs can lead low-carbon action due to declining technology costs, they are often hindered by high debt, fossil fuel subsidies, and a lack of comprehensive legal frameworks. The report recommends that governments mandate specific emission targets for SPCs, shift public finance from fossil fuels to clean energy, and that SPCs establish dedicated JET offices and improve data transparency to build stakeholder trust.

• State-owned power companies (SPCs) are pivotal to global decarbonization, controlling about 50% of global power station capacity and a similar share of sectoral CO2 emissions.
• Eskom in South Africa established a dedicated JET Office in 2020 to manage social impacts and avoid conflicts of interest by reporting directly to the CEO, though its recent move into the generation division has raised concerns.
• The closure of the Komati power station in South Africa demonstrated that poor sequencing—where plant shutdown began before JET initiatives and repowering projects were implemented—led to economic gaps and community frustration.
• NTPC in India has successfully scaled renewables by acting as a guaranteed off-taker for private developers and creating a dedicated subsidiary, NTPC Green Energy Limited (NGEL), which used an IPO in 2024 to raise approximately USD 1.2 billion for debt reduction and expansion.
• Vietnam Electricity (EVN) faced significant grid congestion and curtailment of renewables due to a geographic mismatch between generation centers in the South Central/Central Highlands and demand centers in Hanoi and Ho Chi Minh City.
• EVN improved grid stability through technical solutions, including an in-house forecasting model that reduced daily renewable energy forecast errors to below 10%.
• PLN in Indonesia faces significant hurdles in early coal retirement due to a lack of a comprehensive legal framework and financial strain from 'take-or-pay' contracts with independent coal power plants.
• Financial constraints are a systemic barrier for SPCs in EMDEs, with many burdened by high debt and a reliance on government subsidies that often favor fossil fuels over clean energy.

APA

Halsey, R., Do, N., Goel, S., Sharma, D., Suharsono, A., Beaton, C., & Benoit, P. (2025). State of Transition. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-07/state-power-companies-energy-transition.pdf

Chicago

Halsey, Richard, Nhat Do, Siddharth Goel, Deepak Sharma, Anissa Suharsono, Christopher Beaton, and Philippe Benoit. State of Transition. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-07/state-power-companies-energy-transition.pdf.

Wikipedia

{{cite report |last1=Halsey |first1=Richard |last2=Do |first2=Nhat |last3=Goel |first3=Siddharth |last4=Sharma |first4=Deepak |last5=Suharsono |first5=Anissa |last6=Beaton |first6=Christopher |last7=Benoit |first7=Philippe |title=State of Transition |publisher=International Institute for Sustainable Development |date=July 2025 |url=https://www.iisd.org/system/files/2025-07/state-power-companies-energy-transition.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{halsey2025state, author = {Halsey, Richard and Do, Nhat and Goel, Siddharth and Sharma, Deepak and Suharsono, Anissa and Beaton, Christopher and Benoit, Philippe}, title = {{State of Transition}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = jul, url = {https://www.iisd.org/system/files/2025-07/state-power-companies-energy-transition.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }