The Ministry Of Energy And Mineral Resources Prepares Regulations On The Economic Value Of Power Plant Carbon

The Ministry of Energy and Mineral Resources building on Jalan Merdeka Selatan, Jakarta. (Photo: ANTARA)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) is drafting regulations regarding the implementation of the carbon economic value of power plants to realize the government's commitment to controlling greenhouse gas emissions in the energy sector. Nugroho said that every business actor in power generation is required to submit a report on greenhouse gas emissions to the Directorate General of Electricity at the Ministry of Energy and Mineral Resources. through the APPLE-Gatrik application. Every business actor who does not submit a report on greenhouse gas emissions, is not allowed to trade carbon and all greenhouse gas emissions produced above the upper limit of greenhouse gas emissions are subject to a carbon tax.

He explained that the impact of carbon trading on electricity generation, among others, encourages PLTU to make efforts to reduce greenhouse gas emissions through activities, such as the installation of rooftop solar power plants, co-firing, energy efficiency, and other mitigation activities. Those who have an emissions deficit must purchase emissions from generating units that have an emission surplus or an offset equal to the entire emission deficit of the generating unit.

Then for PLTU units that are no longer efficient and have high emissions, they will be taken into account to be included in the PLTU early retirement program to be replaced with new renewable energy plants.

While the opportunity for carbon trading in power generation, in practice, there are potential incentives that will be received by PLTU units that produce emissions below the emission technical approvals that have been determined, because the PLTU unit's deficit status is greater than surplus units and carbon prices will increase. Incentive potential that will be received by new renewable energy generators that have obtained an Emission Reduction Certificate (SPE). This can trigger the development of new and more massive renewable energy plants. In order to meet the target of the agreement in the Paris Agreement and carry out the commitments that have been agreed with the countries in the world to keep the global temperature increase not exceeding 2.0 degrees Celsius. at 1.5 degrees not more than that," said Nugroho.