In my view, Southeast Asia’s power sector is facing one of its most defining moments. Thermal assets, especially coal, still underpin energy security for the region, but every country is also under pressure to align with national decarbonisation strategies and international climate goals. The real question is no longer whether these assets should change, but how they can evolve—through retrofitting, repurposing, or retirement.

I’ve learned so much from hands-on experience with gas power plants and from engaging with experts such as Pramoon Thoykratok, Senior Engineer at the Electricity Generating Authority of Thailand (EGAT), who shared insights on technical feasibility, including remaining plant life, structural integrity, and the potential to adopt new technologies such as carbon capture or co-firing with ammonia.

Dr. Supawan Saelim, Project Lead for Southeast Asia Energy Policy at Agora Energiewende, introduced a structured approach to managing the coal fleet during the energy transition through the “3R strategies” (repurpose, reserve, or retire), discussing the economics of these strategies for selected coal-fired plants. Raghav Raj Kanoria, Managing Director at India Power Corporation Ltd (IPCL), provided invaluable insights into practical pathways for decarbonisation based on experiences in the Indian market. Great moderation by Mr. Nicolas Leong, Energy Business Director, North and Southeast Asia at Wärtsilä, expertly captured these discussions.

When I think about the future of ageing power plants, three dimensions must guide decisions:

1. Technological: Can the plant be adapted to deliver cleaner operations? Does it have the structural integrity to support retrofits, biomass co-firing, or even carbon capture? And does it still provide critical services—such as ramping, frequency regulation, or reserve capacity—that renewables and storage cannot yet fully replace?
2. Economic: Operators and governments must weigh retrofitting costs against the rapidly falling price of renewables, storage, and transmission. Projects like EGAT’s Mae Moh illustrate the complexity of deciding between extending plant life and investing in alternatives.
3. Social: Coal plants often anchor local economies. A just transition—supporting workers and communities—must be integral to any strategy.

Comparing international benchmarks highlights stark contrasts. Chile has shown that with deliberate investment and clear policy direction, coal plants can operate flexibly at minimum loads below 30 percent, enabling higher renewable integration while maintaining security. Thailand, however, faces constraints with minimum technical loads near 60 percent, limiting integration of variable renewables. This underscores the urgency for Southeast Asia to accelerate policy, technical adaptation, and investment to align with global transition benchmarks. More detail on Chile’s thermal flexibility

I also draw heavily on insights from the Innovation Regions for a Just Energy Transition (IKI JET) project and its partners, and the CASE programme on the role of renewable hydrogen.

These experiences reinforce a critical point: coal flexibility is a transitional tool, not a permanent solution. Retrofitting must be guided by clear guardrails—binding retirement schedules, credible emissions pathways, and safeguards against lock-in. Not every plant should be upgraded; focus should be on those offering the greatest system value at the lowest cost, with others designated for reserve or retirement.

Looking ahead, biomass co-firing is the most realistic and scalable retrofit option in Southeast Asia, with strong precedents in Europe, Japan, and Korea, and emerging regional supply chains. Hydrogen and ammonia co-firing are promising but will not be mainstream before 2035 due to cost and infrastructure challenges. CCS, while essential long-term, will likely be limited to a few state-supported projects initially. Global lessons provide valuable guidance. Germany’s coal phase-out demonstrates that early and transparent planning, careful sequencing of retirements alongside renewable and grid expansion, and robust just transition measures for communities and workers are essential. Many German coal sites were successfully repurposed into renewable hubs, storage facilities, or district heating plants, highlighting how existing infrastructure can continue to deliver value.

For Southeast Asia, the stakes are high. Our coal fleet is younger than in Europe or the U.S., offering more flexibility but also risking long-lived emissions and stranded assets if action is delayed. A system-level approach is essential: governments must define clear pathways with carbon pricing, market reforms, and just transition frameworks, while power producers move beyond incremental life-extension strategies toward hybridisation, fuel-switching, and site repurposing.

Brownfield assets should not be seen simply as liabilities. With the right strategies, they can become enablers of the clean energy transition—providing flexibility, supporting renewable integration, and cushioning communities through the shift. Global experience shows that progress requires both government clarity and proactive, innovative investment by producers. For Southeast Asia, the path forward is clear: it is time to move decisively from retrofit to reinvention, securing a cleaner, more resilient energy future.

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