Misallocated Capital in Fossil Fuel Projects
Definition
Decision errors in budgeting arise from investing in coal-fired stations amid net zero pressures, resulting in government guarantees and subsidies that mask underlying losses.
Key Findings
- Financial Impact: AUD 450 million NSW guarantee for Eraring coal station; industry-wide $2.4 billion annual subsidies signaling misallocation
- Frequency: Annual budgeting cycles for legacy assets
- Root Cause: Lack of visibility into net zero timelines and renewable replacement costs
Why This Matters
The Pitch: Fossil Fuel Electric Power Generation in Australia 🇦🇺 wastes AUD 450 million+ on guarantees for coal stations. Automated transition modeling prevents bad capital allocation.
Affected Stakeholders
CFOs, Investment Committees, Strategic Planners
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Cost Overruns in Capital Project Budgeting
Safeguard Mechanism Non-Compliance Fines
Manual ACCU Trading and Compliance Costs
Reportable Priority Waste Non-Compliance
Ash Disposal Landfill and Compliance Costs
EPA Compliance Penalties
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