PLN: Energy transition needs time, 174 million tons of coal still needed in 2025

Jakarta – PT PLN Energi Primer Indonesia (PLN EPI) estimates that coal demand for PT PLN and independent power producers (IPPs) in 2025 will reach 174.66 million tons, up 4 per cent from this year’s demand of 167.98 million tons.

PLN EPI President Director Iwan Agung Firstantara highlighted the need for a phased approach to emissions reduction. According to him, the transition process takes longer due to various obstacles, including the readiness of renewable energy infrastructure and supporting technology.

“We utilise the coal blending and coal switching programs to ensure that the coal used is more efficient and environmentally friendly. This program is a temporary solution before renewable energy fully replaces the role of coal,” he said.

PLN EPI’s Senior Vice President of Coal Business Development, Eko Yuniarto, emphasised that coal is still a major component in the national energy mix during the transition period. “We understand that coal has an important role in maintaining energy stability, especially when new renewable energy (NRE) is not fully ready to replace the role of fossil energy,” he explained in a press statement Tuesday, November 26.

According to Eko, PLN EPI remains committed to reducing dependence on fossil energy. Eko mentioned that green energy transformation is a strategic step to achieve the net-zero emissions target by 2060. “Renewable energy, such as solar and wind power, is targeted to dominate up to 69 per cent of the total national energy mix by 2060, while coal’s contribution will drop to only 8 per cent,” he said.

In addition, Iwan emphasised that challenges in green energy transformation include funding and technology. “This transformation requires large investments to build renewable energy-based power plants and improve electricity transmission networks capable of supporting intermittent energy such as wind and solar,” he explained.

According to data from PLN EPI, the energy sector without green intervention is projected to contribute up to 1,057 million tons of CO2 by 2060. Therefore, PLN EPI continues to participate in international forums to share experiences and find solutions. At the ASEAN Senior Officials Meeting on Minerals (ASOMM) 2024 in Bali, Iwan emphasised PLN’s commitment as a pioneer of green energy transformation in the region.

“We believe that collaborative efforts at both the national and ASEAN levels are essential to accelerate the energy transition. Green energy is not just about technology, but also about a better future for future generations,” Iwan concluded. (Hartatik)

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