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

This case study by RMI details a pre-feasibility analysis conducted in 2023 for a representative coal-fired power plant in Indonesia. The analysis evaluated four scenarios for accelerated retirement and repurposing—including early retirement without repurposing, early retirement with clean energy repurposing, and biomass co-firing—to determine their financial, technical, and climate impacts for investors, utilities, and the electricity system.

• Early retirement of the case study plant without repurposing is financially feasible for stakeholders, but the PPA tariff needed for Special Purpose Vehicle (SPV) returns exceeds the business-as-usual cost of generation under original ownership. The use of blended financing can reduce this tariff to below both business-as-usual and market financing costs, enhancing financial attractiveness.
• Repurposing the plant site with solar PV and battery storage can increase investor value and reduce emissions, but the scale of these benefits is limited by land availability. Using only the existing site results in a small system size; achieving greater financial upside and emissions reductions would require utilizing additional land around the plant site.
• Biomass co-firing is generally not profitable because the capital investments required for retrofitting the system and processing fuel typically outweigh the savings from coal fuel. This option is only attractive under the lowest cost estimates for capex, O&M, and retrofits, and it would likely face sustainability and climate scrutiny.
• Future value could be generated through innovative repurposing options if regulatory frameworks evolve. These include site hybridization (investing in clean energy when the levelized cost of solar is cheaper than coal), stand-alone thermal energy storage using existing steam cycle and transmission assets to address renewable energy curtailment, and flexible operation via new remuneration models and PPA structures.

APA

RMI (2024). Finding (Re)Purpose: The Power of a Pre-Feasibility Analysis in Coal Repurposing Case Study. https://rmi.org/app/uploads/2024/07/finding_re_purpose_case_study.pdf

Chicago

RMI. Finding (Re)Purpose: The Power of a Pre-Feasibility Analysis in Coal Repurposing Case Study. 2024. https://rmi.org/app/uploads/2024/07/finding_re_purpose_case_study.pdf.

Wikipedia

{{cite report |author=RMI |title=Finding (Re)Purpose: The Power of a Pre-Feasibility Analysis in Coal Repurposing Case Study |date=July 2024 |url=https://rmi.org/app/uploads/2024/07/finding_re_purpose_case_study.pdf |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 Case Study}}, institution = {RMI}, year = {2024}, month = jul, url = {https://rmi.org/app/uploads/2024/07/finding_re_purpose_case_study.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }