Page 7 - AsiaElec Week 23 2021

AsiaElec POLICY AsiaElec

Indonesia confirms plan for 41 GW

of new capacity by 2030

INDONESIA INDONESIA is aiming to build 41 GW of new at 52 coal plants across the country by 2025 to
generating capacity by 2030, of which 52% will reduce emissions. It has so far begun co-firing at
be fossil fuel-based and 48% renewables. 11 coal power plants.
The government’s Power Procurement Plan It aims to gradually retire coal-fired power as
(RUPTL) said that 35 GW has already been dis- Indonesia rolls out its carbon neutrality ambi-
cussed with Indonesian utility PLN, while the tions to 2050.
remaining 6 GW still requiring further planning. The government has also drawn up propos-
Rida Mulyana, general director for elec- als to bring in a carbon tax to curb greenhouse
tricity at the Ministry for Energy and Mineral gas (GHG) emissions, in addition to raising
Resources, said that that the government in 2021 VAT rates and reforming income tax, as part of a
aims to open 8,915 MW of capacity. major overhaul of the tax system.
This includes 4,688 MW of coal-fired mine- “For developing nations with high economic
mouth power plants, 3,467 MW of from gas- growth and low economic affordability, the
fired capacity, 22 MW of diesel power plants and net zero commitments under the Paris Agree-
737 MW of renewables. ment present the dilemma of balancing that
Among the 41GW of new generation capac- growth with the obligations to decarbonise. In
ity in the next 10 years, 35GW have been dis- this context it is not surprising Indonesia in the
cussed with the national electric utility PLN, immediate term still relies heavily on fossil fuel,”
with 6GW still requiring further planned. said infrastructure expert John Yeap of Pinsent
The figures show that Indonesia is increasing Masons.
green energy’s share of new generation addi- “However, Indonesia’s evolving energy policy
tions, although fossil fuels will still play a pre- of pivoting away from carbon intensive forms of
dominant role. power generation in the longer term is consistent
Crucially, coal’s presence is set to decline with the policy change sweeping across much of
sharply, giving way to natural gas as a key gen- the ASEAN region and further afield,” he said.
erating fuel. “An energy transition plan will need to be
Indeed, PLN has already taken to decision to put in place so that a clear roadmap towards net
stop building new coal capacity in 2023, when zero can be established with all considerations
it intends to finish it current 35 GW building addressed. We can anticipate not just Indonesia
programme. but other countries with high reliance on carbon
This 35 GW, which was announced in 2015, intensive generation to implement such energy
includes 20 GW of coal, 13 GW of gas and 3.7 transition plans in due course so as to meet their
GW renewables. net zero goals,” he added. ™
PLN also has plans to implement co-firing

Week 23 09•June•2021 www. NEWSBASE .com P7