Finding (Re)Purpose: The Power of a Pre-Feasibility Analysis in Coal Repurposing

RMI conducted a pre-feasibility analysis in 2023 for a high-capacity coal plant in Indonesia to evaluate retirement and repurposing options. The study found that replacing the plant with solar and storage is the preferred solution, potentially avoiding tens of millions of tons of carbon emissions and generating tens of millions of dollars in free cash flow for equity investors, provided there is adequate land and cheap financing.

• For the analyzed Indonesian coal plant, the optimal repurposing strategy following early retirement is replacement with solar and storage, assuming sufficient land availability and access to low-cost financing. This approach could result in tens of millions of dollars in free cash flow for equity investors and the abatement of tens of millions of tons of CO2, though the exact benefits depend on the size of the replacement system.
• Blended financing is critical for early retirement scenarios without repurposing to prevent electricity cost increases. Such financing makes deals more attractive to stakeholders by reducing costs compared to a business-as-usual scenario where the plant operates until the end of its technical life, highlighting the need for diverse capital arrays in Indonesia and the Global South.
• Biomass co-firing is generally less financially viable than other repurposing options because the capital and operational expenses for retrofitting and fuel typically exceed the cost savings. It is only profitable under the lowest assumed cost conditions and is subject to sustainability and climate scrutiny, although economics vary by asset.
• The potential for converting coal sites to clean energy facilities, such as solar PV and battery storage, is primarily constrained by the amount of available land around the original site. Determining how much additional land can be utilized requires further environmental and technical analysis.
• Certain repurposing options—including site hybridization with clean energy, reduced asset utilization, and stand-alone storage—were not analyzed by RMI because current regulatory frameworks do not provide a model for the remuneration of those services.

APA

RMI (2024). Finding (Re)Purpose: The Power of a Pre-Feasibility Analysis in Coal Repurposing. https://rmi.org/resources/finding-repurpose-the-power-of-a-pre-feasibility-analysis-in-coal-repurposing/

Chicago

RMI. Finding (Re)Purpose: The Power of a Pre-Feasibility Analysis in Coal Repurposing. 2024. https://rmi.org/resources/finding-repurpose-the-power-of-a-pre-feasibility-analysis-in-coal-repurposing/.

Wikipedia

{{cite report |author=RMI |title=Finding (Re)Purpose: The Power of a Pre-Feasibility Analysis in Coal Repurposing |date=23 July 2024 |url=https://rmi.org/resources/finding-repurpose-the-power-of-a-pre-feasibility-analysis-in-coal-repurposing/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024finding, author = {{RMI}}, title = {{Finding (Re)Purpose: The Power of a Pre-Feasibility Analysis in Coal Repurposing}}, institution = {RMI}, year = {2024}, month = jul, url = {https://rmi.org/resources/finding-repurpose-the-power-of-a-pre-feasibility-analysis-in-coal-repurposing/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }