Warning lights flash for Asean's coal IPPs

摘要

The complexity of Southeast Asia's tortured relationship with coal can be difficult to pin down. Usually, the case for coal rests on an expedient growth agenda premised on unproven arguments that coal power is "cheap" and that the guarantees needed to attract foreign investment are a cost-free option. This is a high-risk scenario that is increasingly testing the abilities of the most capable government officials, especially those who are well aware of the long-term financial advantages of deflationary renewables and who shudder at the cost of locking in inflationary long-term FX commitments. The problem for the bureaucrats has been finding the right local examples that make it crystal clear that coal advocates and bankers have loyalty only to their own interests.