Securitization a Useful Financing Tool for Transition From Coal

Payne Institute Fellow Brad Handler and Director Morgan Bazilian write about how nearly 75% of electricity generated from coal in the U.S. could be produced more cheaply with renewables, strengthening the environmental arguments to accelerate the retirement of coal plants. Yet such transitions to renewable sources have to factor in the costs—incremental, stranded and most pressingly, societal—of shutting down existing plants, as well as the interests of communities and consumers. Financial instruments are being employed to help ease the burden of the transitions, including securitization.  November 23, 2020.