The fate of European coal-fired power stations planned in the mid-2000s: Insights for policymakers, companies, and investors considering new coal

Between 2005 and 2008 European utilities were determined to embark on a major coal-plant construction programme. They announced plans to build 49 GW of new coal-fired power capacity. To date 77% of this new capacity has been cancelled, with more likely to be cancelled soon. The economics of existing plants have deteriorated too. There are a number of important questions that stem from this: why did the majority of plant proposals not go ahead; what makes the projects that did proceed different; what challenges are these new plants likely to face now and in the future; and to what extent are the projects that did succeed likely to become stranded generation assets? The results are relevant not just to understanding the fate of the remaining coal-fired power stations in Europe, but also the future of those currently planned or being built in other countries. This working paper examines each of these questions in turn.See full briefing paper here