Jakarta, CNBC Indonesia – The Indonesian government’s plan to get out of the coal business doesn’t seem to be a joke.
Previously, it was targeted that the coal-fired power plant (PLTU) to be retired until 2030 was 1 Giga Watt (GW) based on the plan of PT PLN (Persero) or even 5.5 GW as disclosed by the Minister of Finance Sri Mulyani Indrawati, now the Ministry of Energy and Resources Mineral Resources (ESDM) is even targeting a larger number.
Minister of Energy and Mineral Resources Arifin Tasrif said that around 9.2 GW of coal-fired power plants is targeted to be terminated earlier before 2030.
This was conveyed in “The Friends of Indonesia Renewable Energy (FIRE) Dialogues” in the COP26 Climate Summit series in Glasgow, Scotland.
Arifin said that the plan to terminate the PLTU was in order to achieve the goal of a low-carbon economy and net zero emission or carbon neutral where Indonesia targets to achieve carbon neutrality by 2060 or sooner.
“Taking into account the shift in the global energy landscape to a low-carbon economy and Net Zero Emission (NZE), Indonesia did exercise back, which is around 9.2 Giga Watt (GW) Steam Power Plants can be terminated earlier before 2030,” he said, as quoted from the official Instagram page of the Ministry of Energy and Mineral Resources @kesdm, Sunday (11/07/2021).
According to Arifin, the partnership is expected to be able to fulfill Indonesia’s commitment to reducing greenhouse gas emissions in accordance with Nationally Determined Contribution (NDC) in 2030 by 29% of Business as Usual (BAU) with its own capabilities and 41% with international assistance.
“This program is expected to help us develop a Long-Term Energy Plan to ensure the achievement of Indonesia’s ambitions, as well as enhance cooperation with domestic and international partners,” he said.
Previously, Finance Minister Sri Mulyani said Indonesia had identified 5.5 GW of coal-fired power plants that could be included in the PLTU early retirement program for the next eight years. The funding requirement for the early retirement of the PLTU is estimated at US$ 25 billion to US$ 30 billion.
“In the energy sector, Indonesia will open up investment opportunities for early retirement from coal plants which then transition to renewable energy,” Sri Mulyani said, quoted by CNBC Indonesia from her Instagram account @smindrawati, Tuesday (3/11/2021).
He also revealed a more ambitious target in which RI could retire coal-fired power plants in 2040, earlier than the initial plan in 2056.
“If we want to advance to 2040, then we need funds to retire coal early and build new capacity from renewable energy,” Sri Mulyani said, as quoted by Reuters, Wednesday (11/3/2021).
Previously, PT PLN (Persero) had mentioned the timetable for the termination of the PLTU.
Deputy President Director of PLN Darmawan Prasodjo said that PLN would begin to replace PLTU and Gas Engine Power Plants (PLTMG) with new and renewable energy (EBT) based power plants of 1.1 Giga Watt (GW) in 2025.
“We wake up time line, namely 2025-2030, new PLTU has been banned, it is even hoped that in 2025 there will be replacement (replacement) PLTU and PLTMG with EBT power plants,” said Darmawan during a Hearing Meeting (RDP) with Commission VII DPR RI, Thursday (27/05/2021).
Furthermore, PLN targets to retire the Subcritical PLTU Phase I with a capacity of up to 1 GW by 2030.
“By 2030 retirement (pension) the first phase of subcritical 1 GW,” he added.
Then, retire PLTU Subcritical phase II with a capacity of 9 GW in 2035. And in 2040 it is targeted to be able to retire PLTU Supercritical by 10 GW.
Meanwhile, phase I Ultra Supercritical PLTU is targeted to be retired in 2045 by 24 GW and the last Ultra Supercritical PLTU of 5 GW can be retired in 2055.
“Retirement The Ultra Supercritical PLTU can be implemented gradually from 2045-2056, and in the end it can reach carbon neutral in 2060,” he said.