Part 3 in a series on ETM deals in Southeast Asia. How PPAs have shaped power markets in Indonesia, Vietnam and the Philippines, and why their lack of transparency and rigid terms pose challenges for Southeast Asia's energy transition.

Part 2 of a series on ETM deals in Southeast Asia. 2024 will be a year of crosscurrents for Southeast Asia’s energy transition. With political risk running high, we look into the technical debates and developments that will determine how fast regional analysts and system planners can fill the gap between high-level policy statements and the functional roadmaps that markets need.

Part 1 in a series on ETM deals in Southeast Asia. 2024 is shaping up to be the year when markets learn how Energy Transition Mechanisms (ETMs) will continue to evolve in different Southeast Asian markets. ETMs are initiatives aimed at financing early coal retirement transactions. Their flexibility can be a strength if it improves policy alignment—and begins to deliver a pipeline of bankable deals.

The primary barrier to closing coal plants in many markets is the presence of long-term supply agreements, coupled with a lack of open data on the financial implications of these agreements.

TransitionZero’s Coal Asset Transition (CAT) tool for the Philippines covers all 58 of the countries’ coal units, backed by data from over 200 PSAs covering over 65% of generation from 2020 to 2023. CAT offers comprehensive asset-level insights into the Philippine coal fleet, including estimates on the cost of abatement and the cost of buying out remaining power supply agreements for each plant.