Indonesia lifts new, renewable energy generation target

Market: Biomass, Coal
08/06/21

Indonesia's energy and mineral resources ministry has raised the country's target to generate electricity from new and renewable energy (EBT) from 30pc to 48pc, which includes co-firing coal with biomass.

State-owned utility PLN's draft electricity generation plan for 2021-30 outlined the increase of EBT generation to 48pc or 19,899MW compared with a previous target for 2019-28 of 30pc. It also stated that the country plans to add 41GW of power generation capacity over the next 10 years.

Various options to achieve this target are being discussed, director-general of electricity Rida Mulyana said. This includes the conversion of diesel-fired power plants to EBT plants, co-firing coal with biomass at power plants, retirement of ageing power plants and relocation of others.

Some Indonesia-based suppliers saw higher domestic demand for palm kernel shell (PKS) biomass as some coal-fired power plants finished test co-firing with biomass last year. They also pointed out the price to sell PKS domestically could be higher because of the country's current record-high export tax and levy.

Indonesia's export tax and levy increased to $35/t for June as the June crude palm oil benchmark price rose above $1,200/t.

Indonesia is the biggest PKS exporter and the third-largest wood pellet exporter in Asia-Pacific after Vietnam and Malaysia. The country exported 3.17mn t of PKS and 311,000t of wood pellets in 2020.

By Sam Hong

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