Carbon Tracker’s Power-Asset Level Economics Model (CTI-PALEM) quantifies the costs of using transition finance to expedite coal power phaseouts to support three key financial stakeholder groups involved in refinancing and coal retirement deals:
The tool provides detailed cost estimates and retirement pathways to inform decision-making that aligns with climate goals while ensuring financial returns.
CTI-PALEM models multiple combinations of concessional debt and/or equity refinancing across a range of coal phaseout scenarios, from conservative to more aggressive timelines. Users can interactively select financial parameters and retirement schedules. All cost pathways are modelled to ensure that stakeholders receive a return on investment equal to their hurdle rate.
Notably, CTI-PALEM can be used to identify priority coal units and cost-optimised phaseout pathways in ways that not only minimise the need for transition finance but also extract the highest value for money on a US$/tCO2-avoided basis.
The most recent release focuses on the Philippines, modelling the youngest operating coal plants that reached financial close on or after 2010.
CTI-PALEM is underpinned by detailed, asset-level discounted cashflow modelling, using publicly available information.
View the tool here: https://data.carbontracker.org/financial-retirement-mechanisms/philippines/overview
Under the overview tab, users can explore a high-level overview of CTI-PALEM’s methodology under “Coal refinancing and retirement 101.”
Users can select a specific coal unit from the drop down list to explore data and analysis, like unit cashflows, under the initial investors tab.
Notably, CTI-PALEM generates data for multiple combinations of concessional debt and/or equity refinancing across a spectrum of more or less aggressive phaseout scenarios, allowing users to interactively choose financial parameters and timelines.
Explore bespoke cost-optimised portfolios and additional data under the donor/subsidy provider tab.
