IEEFA Says New Coal Power Plants In India Will Become Stranded Assets
In theory, economics is pretty simple stuff. If Farmer A is selling apples 4 for a dollar and Farmer B is selling them 5 for a dollar, who you gonna call when you need apples? Farmer B, of course. You’d be crazy to pay more for apples than you need to, especially if you hope to resell them and become the Jeff Bezos of the apple world.
Now imagine you are a native of India and want to supply electricity to the teeming masses. You can either build coal-fired generating stations that cost more to operate or build renewable energy resources like solar and wind farms that cost less to operate. Once again, you’d be crazy to select the more expensive option, but that is just what India plans to do? Why? Because coal is like a religion and common sense rarely applies to theological discussions.
The Institute For Energy Economics And Financial Analysis says India is hell bent on building a fleet of new coal-fired generating stations — 33 gigawatts (GW) currently under construction and another 29 GW in pre-construction. All of them will wind up being stranded assets, says Kashish Shah, a research analyst at IEEFA. “Coal-fired power simply cannot compete with the ongoing cost reductions of renewables. Solar tariffs in India are now below even the fuel costs of running most existing coal-fired power plants.
“In the last 12 months no new coal-fired power plants have been announced, and there has been no movement in the 29 GW of pre-construction capacity. This reflects the lack of financing available for new coal fired power projects, and also the flattening of electricity demand growth, which has impacted coal the most.”
Despite such headwinds, the Central Electricity Authority still projects India will reach 267 GW of coal-fired capacity by 2030. That will require adding 58 GW of net new capacity additions, or about 6.4 GW annually.
IEEFA says it is “highly improbable” that the CEA’s projections will materialize, given the ongoing financial and operational stress in the thermal power sector, which means India’s coal capacity plans should be urgently revised.
“Any projections for India’s future generation mix should take into account that new coal-fired power plants are likely to become stranded assets,” says Shah. “The new capacity would only be economically viable if it replaced end-of-life, polluting power plants with outdated combustion technology and locations remote to coal mines.
“Even then, there would need to be sufficient coal plant flexibility to deliver power into periods of peak demand, and the time-of-day pricing would need to be high enough to justify the low over the day utilisation rates.”
Shah adds that without material growth in electricity demand, installing additional inflexible high-emissions baseload capacity will increase the financial distress of state-owned distribution companies by adding to their burden of paying fixed-capacity charges to thermal power plants that are used only sparingly.
The International Energy Agency’s road map for reaching net zero emissions by 2050 recommends no new investment in fossil fuel supply projects, and no further final investment decisions for new unabated coal plants. IEEFA notes there is little appetite from private investors to risk new capital in a sector that continues to carry US$40–60 billion of non-performing or stranded assets.
Only India’s state-owned Power Finance Corporation and Rural Electrification Corporation continue to tout new coal-fired power capacity, but that may have more to do with politics than economics. Nearly half of the 33 GW of capacity now under construction in India is sponsored by those state-owned companies. IEEFA suggests they should “walk away” from those “under construction” projects now to avoid the risk of them sitting idle after they are completed.
“Governments, investors and utilities across the globe are rapidly transitioning to cheaper domestic zero emissions renewable energy,” says Shah. “India should be taking advantage of the falling cost of renewables plus rising viability of battery storage, which can provide clean grid-firming, to meet incremental power demand.
“Accelerating renewable energy capacity commissioning is critical to lower India’s overall energy costs and support faster electrification of transportation and other industries. Ultra-low cost renewables would also enable development of a green hydrogen economy to strengthen India’s long-term objective of energy security.” Seems like basic economics to us.
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Ford is testing a new electrified Mustang that may not be as electric as it seems. The next-gen Mustang is apparently already in development. Here’s what we know about it so far.
Is Ford launching an electrified Mustang Hybrid?
After postponing around $12 billion in planned spending on electric vehicles in 2023, Ford’s CEO Jim Farley said the company would lean more into hybrids.
Farley told investors and analysts on the company’s Q3 2023 earnings call that he’s “so thankful we have kept our foot on the gas to freshen our ICE and HEV products as we enter a changing market.”
Ford’s CFO, John Lawler, reaffirmed the company’s plans later that year, saying the company would use hybrids as a bridge to fully electric vehicles.
“With EV adoption slower, hybrids are going to be a bigger part,” Lawler said, adding that Ford “became a little bit complacent” on hybrid tech. Last year, Ford said it would introduce a hybrid version for every gas-powered vehicle in its lineup by 2030.
Ford is apparently making good on its promise with a new Mustang hybrid in development. According to a new report from Ford Authority, the Mustang hybrid, internally code-named S650E, is in development, and prototypes are already being tested.
The report claims the new Mustang has entered the Technology Prove-Out stage, suggesting it will be electrified to some degree.
Whether it will be a traditional hybrid or a plug-in hybrid vehicle (PHEV) remains unclear. Although the company has yet to confirm it, Farley said that a “partially electrified Mustang coupe” was a strong possibility, and Ford’s Performance unit is already testing hybrid powertrains.
Electrek’s Take
Will the new Mustang hybrid sit alongside the Mach-E in Ford’s lineup? Ford’s electric crossover SUV remains one of the top-selling EVs in the US, so it’s unlikely to go anywhere, but it is due for a refresh with so many new rivals entering the market.
Through August, Ford sold 34,319 Mustang Mach-Es (+6.7% YOY) in the US. The gas-powered Mustang continues to fall out of favor, with 31,015 units sold in the first eight months of 2025, 8.3% fewer than during the same period in 2024.
With Hyundai, Stellantis, Honda, and several other global OEMs planning to launch new hybrid models in the US, the Ford Mustang hybrid doesn’t come as a total surprise. We will still have to wait for the official word from Ford, but a new electrified Stang seems more than likely.
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Environment
NYC’s new 15 MPH speed limit for e-bikes goes into effect next month, but cars still get a pass
New York City’s new 15 mph speed limit for electric bikes is officially set to take effect next month, in what city officials claim is a move to improve street safety. But not everyone is convinced the crackdown is targeting the real threat on the roads.
The new limit, approved earlier this year, applies to e-bikes, mopeds, and other micromobility vehicles operating in city bike lanes. Riders caught exceeding 15 mph could face warnings or citations, though the exact enforcement strategy remains murky. The NYPD says it will focus on “education first,” but given the city’s track record, that could just be the calm before the ticket storm.
The rule comes amid growing concerns from some residents and officials about rising speeds among e-bike riders, especially delivery workers who often rely on throttle-equipped bikes to meet tight deadlines. But while the new speed cap is aimed at micromobility vehicles, there’s a noticeable omission: cars, trucks, and SUVs, which continue to be allowed to travel at 25 mph – and in practice, often much faster – even though they pose exponentially more risk to vulnerable road users and are responsible for orders of magnitude more deaths each year.
It’s a move that raises eyebrows and has resulted in thousands of publicly-submitted comments that the New York Department of Transportation has seemingly ignored.
After all, the majority of traffic fatalities in New York City don’t involve e-bikes. They involve cars. And while some e-bike riders certainly ride irresponsibly, the blanket limit nearly cuts in half the more widely accepted e-bike speed limits used around the US, and doesn’t even apply to pedal bikes, which can easily exceed such speeds despite nearly identical average weights when factoring in the vehicle and rider. Not to mention, it ignores the critical role that e-bikes play in reducing traffic congestion and emissions, especially in the delivery and commuting sectors.
So while New York is slowing down its most efficient and sustainable form of urban transport, it’s letting the real heavyweights keep their speed. If the goal is safety, then it’s fair to ask: why aren’t cars being asked to go 15 mph too?
Because once again, it seems the rules are written for the powerful – not the vulnerable.
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