Ready To Join Indonesia's Energy Transition, PLN Susun Map Jalan Pension Early PLTU

PLN President Director Darmawan Prasodjo. (Photo: Doc. Antara)

JAKARTA - PLN President Director Darmawan Prasodjo welcomed the government's support for the success of the energy transition, especially in pursuing the 2060 net zero emission (NZE) target. Even PLN has been preparing a roadmap since 2021 and has been submitted at the COP26 Summit in Glasgow.

PLN is also ready to lead the energy transition in Indonesia. To support this plan, PLN has prepared a road map for early retirement of steam power plants (PLTU) to reach NZE by 2060.

The stages of the coal-fired PLTU retirement mechanism will be carried out in stages until 2056 and PLN will replace it with an EBT.

On the PLN roadmap, the acceleration of PLTU's retirement of 3.5 GW can be done before 2040, for PLTU with subcritical technology. Acceleration of the retirement can be done when the capacity of the replacement EBT is operational, the aspect of just transition is fulfilled, does not cause an increase in financial burdens that burden the government, and there is financial assistance from the international community.

In addition to early retirement, PLN will reach NZE in 2060 by operating PLTU with Carbon Capture, Utilization, and Storage (CCUS) of 19 GW. Other initiatives such as biomass cofiring in several PLTUs will also be carried out to prevent future emissions

"Not only will PLTU retire, PLN will also not carry out PLTU development, except for the completion of development which is currently under construction," said Darmawan.

To be able to retire PLTU, PLN certainly needs a lot of funds. The government has launched Energy Transition Mechanism (ETM) as one of the financing strategies to retire this PLTU.

Darmawan explained that although the PLTU was retired in stages, PLN did not remain silent in an effort to reduce emissions in the already operating PLTU. PLN innovated by implementing a biomass co-firing program for PLTU.

The implementation of the co-firing program at PLN's PLTU starting in 2020 has been successfully carried out at 32 PLTU locations. Through substitution, some coal with biomass has an impact on increasing the mix of EBT and reducing carbon emissions.

"This is a populist-based energy ecosystem because the supply of biomass will be met from the collaboration of all elements of society," he said.

Not only suppressing emissions through reducing coal at the plant, but PLN also carries out a dedieselization program of 5,200 existing diesel power plants (PLTD) throughout Indonesia. PLN replaces it with an EBT generator based on local natural potential.

"This is a big change because it turns import-based energy into cheaper domestic-based energy," he said.

Instead, PLN will also develop an EBT-based power plant of 20.9 GW by 2030.

"We are the vanguard in supporting the government's efforts to reduce carbon emissions and energy transition. We believe this effort requires collaboration and cooperation from all parties. We, PLN, open up opportunities for cooperation to be able to make this agenda a success," concluded Darmawan.