The Risk of Stranded Assets from Plans to Build New CFPPs

15 October 2026

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Admin CERAH

The Risk of Stranded Assets from Plans to Build New CFPPs

This study analyzes the financial viability and stranded asset risks of three delayed coal-fired power plant projects: Sumut-1, Jambi-1, and Jambi-2. The modeling results show that all three are very close to the economic viability threshold. Sumut-1 has not yet met the viability threshold, while Jambi-1 and Jambi-2 are only marginally viable. Even minor changes in coal prices, electricity rates, operational performance, and financing costs could render the projects unfeasible. This study emphasizes the importance of conducting a financial reevaluation, sensitivity analysis, and validation of actual data before proceeding with construction, in order to minimize investment risks and the potential for stranded assets during the energy transition.

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