Indonesia eyes retiring 13 coal-fired power plants

Spanish Market: Coal, Electricity
27/08/24

Indonesia's energy ministry (ESDM) is looking to retire 13 coal-fired power plants before 2030, as part of the country's efforts to cut emissions in line with its net zero goals.

The ESDM identified the 13 coal-fired power plants through a study jointly conducted by the Bandung Institute of Technology (ITB) and the United Nations Office for Project Services (UNOPS), it said.

The 13 plants were identified as candidates for early retirement based on multiple factors such as economic life, electricity production offtake, and emission levels in relation to electricity produced, the ESDM said. The units have an estimated total capacity of 4.8GW and collectively produce roughly 48mn t of CO2 equivalent (CO2e), it added. The ministry did not indicate the 13 plants' coal consumption volumes.

All 13 units are owned by state-owned utility PLN, which could make them easier to shut down compared to independent power producers which are owned by private-sector companies. The ESDM did not identify the 13 plants, but it named three locations which it will be prioritising. It is looking to close part of the 4GW Suralaya power complex in Banten province, specifically the older units which have been operational since 1984. These units are nearing the end of their economic life and have high emissions output, making them prime candidates for early retirement.

Another power plant complex identified in the study is PLN's unit at the 4GW Paiton power complex. The ESDM also aims to retire the 200MW Ombilin plant in west Sumatra as the plant is utilised mainly as a peaking plant, which is a facility that operates only when there is a need for additional power. This means its shutdown will have minimal impact on the community, the ESDM said.

The ESDM is currently drafting a ministerial regulation to retire the identified power plants. The said regulation will also serve as a reference for future early retirement efforts.

By Antonio delos Reyes

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