Page 8 - AsiaElec Week 30 2021

AsiaElec POLICY AsiaElec

Fossil fuels continue to dominate

Indonesia’s new NDC

INDONESIA INDONESIA has submitted revised 2030 cli- generation will grow under this pathway to 43%
mate change targets to the UN, although fossil by 2050, coal will still provide 38% of the coun-
fuels are still set to dominate, providing 69% of try’s expanding electricity needs. Methane gas
the country’s primary energy supply by 2050. (10%) and biofuels (8%) make up the rest.
The Nationally Determined Contribution Although fossil fuels will predominate, the
(NDC) commits Indonesia to reducing green- government says it will put in place a series of
house gas (GHG) emissions by 41% by 2030, technological improvements, such as carbon
relative to the 1990 benchmark, up from the pre- capture technology, to reduce emissions.
vious target of 29% for 2020. The government claimed that 76% of
The government also published a long-term coal-fired power plants will be equipped with
strategy document, submitted to the UNFCCC, carbon capture technology, making them
that outlines three pathways, including a “zero-emissions”.
“low-carbon scenario compatible with the Paris The country’s persistent reliance on fossil
Agreement.” fuels is demonstrated by the government’s recent
The document states that Indonesia aims to power procurement plans.
achieve peak emissions in 2030, before then fall- In June, the government said it was aiming to
ing to 540mn tonnes per year (tpy) by 2050. build 41 GW of new generating capacity by 2030,
The government now aims to achieve net- of which 52% will be fossil fuel-based and 48%
zero emissions by 2060 or sooner, putting it on a renewables.
par with China, but 10 years after the 2050 dates The Power Procurement Plan (RUPTL) states
already named by Japan and South Korea. that 35 GW had already been discussed with
Fossil fuels’ share of primary energy supply Indonesian utility PLN, with the remaining 6
will stay high, with coal, gas and oil respectively GW still requiring further planning.
accounting for 30%, 22% and 25% of supply in The government has also drawn up proposals
2025, and 25%, 24% and 20% by 2050. to bring in a carbon tax to curb GHG emissions,
This means that renewables will comprise just in addition to raising VAT rates and reforming
23% of primary energy in 2025 and 31% in 2050. income tax as part of a major overhaul of the tax
While renewables’ share of electricity system.™

P8 www. NEWSBASE .com Week 30 28•July•2021