Publication: Use of Auctions for Decommissioning Coal Power Globally
Date
2022-10-01
ISSN
Published
2022-10-01
Author(s)
World Bank
Abstract
This report examines the potential
use of auctions as a price discovery mechanism facilitating
accelerated decommissioning of the global coal fleet.
Despite widespread recognition of coal power’s significant
negative impact on climate and health as well as the urgency
of acting in response to climate change, the transition away
from coal power has been slow. This report introduces the
global coal power landscape presents arguments for
decommissioning coal power, including the potential for
savings, mitigation of climate impacts, improved health
outcomes, and significant employment opportunities in clean
energy. It also details the likely challenges inherent in
the transition — the need to ensure reliability, insulation
of coal generation from competitive forces, and impacts on
workers and communities — that will need to be managed and
addressed. The report concludes that coal power plant
decommissioning is part of a multifaceted exercise in which
auctions can play an important supporting role. The auction
process, including the development of requirements and
material obligations, requires a high degree of
standardization. If designed well, it could allow for a coal
transition mechanism to be allocated efficiently and
transparently on a least-cost basis.
Citation
“World Bank. 2022. Use of Auctions for Decommissioning Coal Power Globally. © Washington, DC. http://hdl.handle.net/10986/38213 License: CC BY 3.0 IGO.”