Page 10 - AsiaElec Week 23 2022

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Indonesia proposes classifying

coal technology as low-carbon

INDONESIA THE Indonesian government has proposed clas- prolong the transition (to cleaner energy),”
sifying coal bed methane, coal liquefaction and Mahawira Dillon, a energy policy researcher at
coal gasification as sources of “new energy” in a clean energy think tank CERAH, told Reuters.
new low intended to promote renewable energy. Another energy research group, the Institute
The draft bill, would classify these forms of for Essential Services Reform, said in a commen-
energy alongside nuclear and hydrogen power. tary in March the draft bill shows parliament is
Parliament is set to vote on it next week before accommodating the interests of the coal industry
sending it to government for further discussion, “which wants to continue to gain market share
Reuters reported. when the coal market for electricity generation
However, environmental campaigners declines”.
attached the bill for allowing the use of coal CERAH also called for nuclear energy to be
alongside renewables removed from the bill due to safety risks and
Indonesia has signed up to a global pledge to high development costs.
phase out use of coal, the most polluting fossil Some lawmakers on the energy committee
fuel, which is seen as key to cutting emissions contacted by Reuters did not respond to requests
and keeping warming below 1.5 degrees Cel- for comment. They have previously said Indo-
sius. It has also pledged to reach net-zero carbon nesia should take advantage of its large coal
emissions by 2060. reserves and consider affordability of energy as
The country is the world’s biggest thermal it transitions to cleaner energy.
coal exporter and the industry is a major source Indonesia’s state utility PLN has pledged to
of government revenue. Coal also powers retire all coal power plants by 2056, while the
roughly 60% of its electricity output, far greater government has promised to double the share
than the 12% powered by renewables. of renewables in its energy mix to 23% by 2025.
The draft bill, which was verified by a mem- To encourage investment in renewables,
ber of parliament’s energy committee, lists hydro, lawmakers have proposed compensating the
wind, solar, and geothermal as renewable energy state power company for losses when it provides
sources, all of which would receive incentives for power from renewable sources.
their development. The draft bill also contains proposals for fis-
It also calls for an increase in mandatory cal incentives and support in the form of land,
domestic sales for coal to 30%, from 25% cur- infrastructure and government guarantees for
rently, and the removal of all diesel power plants the development of both new and renewable
by 2024. energy sources.™
“Any support for “new energy” will only

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