Indonesia eyes energy transition plan by August

Market: Coal, Electricity, Emissions
23/05/23

Indonesia aims to finalise a broad plan to guide its energy transition ambitions by August as the country tries to reduce its carbon footprint.

The country's energy ministry (ESDM) said it is working with the ministry of state-owned enterprises (BUMN), the ministry of finance, and state-owned utility PLN to complete the Comprehensive Investment and Policy Plan (CIPP), which will serve as the framework for Indonesia's energy transition through the Just Energy Transition Partnership (JETP). Indonesia in late 2022 entered the JETP, a financing mechanism through which it will receive an initial $20bn over the next 3-5 years from international partners such as the US, the EU, Japan and Canada.

The CIPP will focus on developing new transmission networks, building baseload and peakload renewable energy power plants, new plans for the early retirement of coal-fired power plants, and creating a renewable energy supply chain, the ESDM said. Indonesia plans to reach net zero by 2060.

New renewable energy power plants and smaller plants need to be connected to national grids via the new transmission systems to contribute to the country's electricity supply, ESDM added.

There is a need to reform the early retirement program for coal-fired power plants since the country currently has an oversupply of coal power, ESDM said. PLN has outlined a plan to divest old plants as part of efforts to retire coal-fired units from its fleet. The ministry has identified plants for early retirement, including the 660MW Cirebon 1, the 1050MW Pelabuhan Ratu, and 815MW PLN Paiton coal plants.

By Antonio delos Reyes

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