Jakarta – The demand for clean energy is becoming more urgent worldwide, including in Indonesia, which is committed to reducing greenhouse gas emissions. One of the major steps in achieving this goal is the early retirement of coal-based power plants (PLTU). Regulations supporting the retirement of PLTU have been stipulated in Presidential Regulation Number 112 of 2022 concerning the Acceleration of Renewable Energy Development for Electricity Supply, issued on September 13, 2022. This regulation prohibits the construction of new PLTUs, except those that have been listed in the Electricity Supply Business Plan (RUPTL) before the regulation takes effect or PLTUs that are integrated with the National Strategic Project (PSN) and are committed to reducing greenhouse gas emissions by at least 35 per cent within 10 years of operation. In this regulation, PLTU is allowed to operate optimally until 2050.
According to Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), the retirement of all coal-fired power plants in Indonesia by 2045 is a key step towards achieving zero emissions by 2050, in line with the Paris Agreement target to limit global temperature rise to below 1.5 degrees Celsius. Meanwhile, to achieve the global temperature rise target of 1.5 degrees Celsius, 2 – 3 GW of coal power plant capacity needs to be retired gradually every year until 2045.
“However, three main factors must be considered to realise the early retirement of coal power plants. First, the electricity supply must remain reliable and uninterrupted by the termination of the PLTU. Second, the termination of PLTU operations must significantly contribute to reducing greenhouse gas (GHG) emissions. Third, there must be replacement capacity from renewable energy ready to replace the PLTU in the electricity system,” said Fabby.
To reduce the cost of terminating the PLTU, Fabby suggested that the PLTU’s age of 20 could be considered for early retirement. In addition, coal-fired power plant technology that is still subcritical—whose emission intensity is very high—also needs to be a priority for retirement, especially in areas with overcapacity.
“With supporting regulations and strong studies, early retirement of PLTU does look like an ambitious step that can support Indonesia’s energy transition. However, the main challenge remains in the implementation, which requires the collaboration of various parties and adequate provision of renewable energy. In this context, it is important to see the seriousness of the government and stakeholders in preparing a clear and realistic renewable energy roadmap. If successful, this transition will reduce emissions and pave the way for a cleaner and more sustainable energy system in the future,” said Fabby.
The Indonesia Energy Transition Dialogue (IETD) 2024 event, which will take place on November 4-6, 2024, can be an important moment to discuss the direction of Indonesia’s energy transition policy so that it can provide renewable energy for the industrial sector. The theme of IETD 2024 is “Realising a Just and Directed Energy Transition.” Indonesians can register at ietd.info to get involved in the IETD 2024 event.
This article is a collaborative media partnership between tanahair.net and the Institute for Essential Services Reform (IESR).
Source:
https://iesr.or.id/pengakhiran-dini-pltu-batubara-jadi-langkah-krusial-menuju-nze/
https://iesr.or.id/pensiun-dini-pltu-faktor-penentu-capai-nze-yang-ambisius/
https://iesr.or.id/ulas-efektivitas-alokasi-apbn-untuk-transisi-energi/
