Safe amidst efforts to reduce the capacity factor (CF) of coal phase down coal-fired power plants (CFPPs)

Bisnis.com wrote about the PLN which ensures that the financial condition and system reliability are safe amidst efforts to reduce the capacity factor (CF) of coal phase down coal-fired power plants (CFPPs) rather than early retirement of the plant to pursue the target of zero carbon emissions. The scheme is outlined by PLN through the Accelerated Renewable Energy with Coal Phase Down (ACCEL RE Coal Phase Down) scenario, with a projection of additional new renewable energy (NRE) generation reaching 62 gigawatts (GW) or 75 percent of the installed generating capacity by 2040. Meanwhile, gas generators will take up 25 percent of the national generating capacity in the revised electricity supply business plan (RUPTL) until 2040. Currently, PLN is studying the possibility of reducing CF from PLN-owned plants and independent power producers (IPP). However, the option to reduce CF from IPP or private generators is relatively difficult to implement because they are bound by take or pay contracts. This maneuver was taken by PLN because of the lack of international funding commitments to finance compensation for early retirement plans for coal-fired power plants to date.

 

Katadata.co.id wrote about the Government publishing a draft comprehensive investment planning and policy document (Comprehensive Investment and Policy Plan, CIPP) in the just transition cooperation (Just Energy Transition Partnership, JETP) for public consultation on Wednesday (1/11/ 2023). The Institute for Essential Services Reform (IESR) noted changes that should be appreciated in the CIPP document, especially the significant increase in the renewable energy mix target of around 44% in 2030. In the current JETP scenario, the reduction in emissions is achieved by reducing the utilization of Coal-Fired Power Plants (CFPPs). Thus, achieving the new target of 44% renewable energy mix by 2030 can be achieved if there is increased flexibility in PLN CFPP’s operations, review of private CFPP’s contracts, as well as regulatory support to accelerate the development of renewable energy in Indonesia. However, this CIPP contains the determination of achieving a target of zero carbon emissions (net zero emissions, NZE) in the electricity sector by 2050. This is not in line with the Paris Agreement which encourages ending the use of fossil generators by 2040 and the emission reduction target is only focused on electricity generation emissions in PLN network.

 

CNBCIndonesia.com wrote about Indonesian coal production as of Thursday (02/11/2023) which was recorded as having reached 626.55 million tons, even though the price of coal this year is not as high as in 2022, apparently this does not affect national coal production. Based on Minerba One Data Indonesia (MODI), the production amount has reached 90.22% of the 2023 coal production target of 694.5 million tons. The ICE Newcastle coal price for the December contract closed at US$ 126.5 per ton or down 0.71% in trading Wednesday (1/11/2023). The realization of coal exports was recorded as having reached 321.79 million tons.

Carbon Capture Storage (CCS) and Carbon Capture Utilization and Storage (CCUS)

Kompas.com wrote about the Indonesian government's plan to implement carbon capture and storage technology was considered inappropriate. So far, there are two carbon capture methods, namely Carbon Capture Storage (CCS) and Carbon Capture Utilization and Storage (CCUS). Implementing CCS or CCUS in coal-fired power plants (CFPPs) to capture carbon emissions is considered more expensive than building renewable energy. This assessment is contained in the latest study entitled "Assessing the Feasibility of Developing Carbon Capture Technology in Indonesia" which was released by the Cerah Indonesia Foundation in October 2023. This study states that carbon capture and storage actually has the potential to extend the life of coal-fired power plants, as well as extending opportunities for electricity prices. Apart from that, the decline in carbon capture and storage is also detrimental to the environment and society, and excludes the country's opportunity to maximize renewable energy development.

 

Antaranews.com wrote about the National Research and Innovation Agency (BRIN) assesses that the biomass substitution policy that Indonesia is intensively implementing is a concrete effort to cut emissions from steam power plants or coal-fired power plants (CFPPs). BRIN Mining Technology Researcher Datin Fatia Umar stated that the biomass substitution program not only supports the contribution of new, renewable energy to the national energy mix, but also has a positive impact on the development of a productive community economy through the creation of a community electricity ecosystem that involves active community participation. Biomass substitution is the simplest and cheapest technology compared to the application of clean coal technology in power plants (IGCC) and carbon capture technology (CCS/CCUS). According to him, biomass co-firing technology can be directly implemented and implemented domestically.

 

Bisnis.com wrote about the Just Energy Transition Partnership (JETP) Secretariat officially opening public consultations on the draft investment plan or Comprehensive Investment and Policy Plan (CIPP) before it was ratified as a funding document for the energy transition in Indonesia. CIPP documents can be accessed by the public on the website www.jetp-id.org which was launched today. The public can provide input on the draft investment plan via the input form on the JETP website. Public input submitted before November 14 will be processed by the JETP Secretariat to become the basis for finalizing the CIPP document. The plan is that the CIPP document, which is the basis for implementing the JETP partnership, will be launched in Indonesia before the 28th global conference on climate change (COP) which will take place in Dubai, United Arab Emirates at the end of this year. The JETP Partnership is an energy transition funding initiative worth more than US$ 20 billion or around IDR 310 trillion agreed between Indonesia and developed countries that are members of the International Partners Group (IPG). 

Indonesia not including coal-fired power plants operated by industrial parks from its investment plans in a G7-led funding program to decarbonize the power sector

VoaIndonesia.com wrote about Indonesia not including coal-fired power plants operated by industrial parks from its investment plans in a G7-led funding program to decarbonize the power sector, a source who compiled the document told Reuters. The decision means that Jakarta will not chart a course for the closure of captive coal-fired power installations in its comprehensive investment and policy plan (CIPP) required to secure the $20 billion in funding promised under the Just Energy Transition Partnership (JETP). Captive CFPP is a coal power plant that is operated and used outside the government electricity network by industrial players. The plan will be unveiled Wednesday to get input from the public. Fabby Tumiwa, executive director of the Institute for Essential Services Reform think tank, which is part of the JETP technical working group, said it was better to exclude coal-fired power plants for now than delay the plan.

 

CNBCIndonesia.com wrote about coal down streaming, which is starting to become the government's focus as an effort to transition energy to cleaner energy. Secretary General of the National Energy Council (DEN) Djoko Siswanto revealed that downstream coal can be used as a substitute for LPG through derivative products from dimethyl ether (DME). Currently, coal is still the largest energy contributor to electricity generation in the country. To reduce carbon emissions from CFPPs, co-firing is carried out in combination with biomass. Meanwhile, he acknowledged that there are still coal-based plants that do not combine biomass in the process. In the future, there are plans to phase out with new renewable energy (NRE) which is ready, whether geothermal, hydro or nuclear. Carbon Capture Utilization and Storage (CCUS) and Carbon Capture Storage (CCS) can also be an alternative, if biomass or NRE mixing cannot be done. He emphasized that CFPPs contracts whose contracts have expired will not be extended, provided that NRE is ready so that electricity in the country is maintained

PT PLN which has prepared a number of strategies to anticipate demands for reducing carbon emissions in the electricity sector

CNBCIndonesia.com wrote about President Joko Widodo (Jokowi) who ordered that this year at least one coal-fired power plant (CFPP) could be guaranteed to be retired early. Meanwhile, Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana said that his party is planning an early retirement program for coal-fired power plants at 2 CFPPs, namely Pelabuhan Ratu CFPP and Cirebon-1 CFPP. However, between the two CFPPs, it is still being decided which one can be executed first.

 

Kontan.co.id wrote about PT PLN which has prepared a number of strategies to anticipate demands for reducing carbon emissions in the electricity sector. One of the big tasks of this state-owned electricity company is to retire early and slowly turn off coal-fired power plants (CFPPs) which are currently still the backbone of national electricity. The existence of coal-based power plant is still a mainstay because it is considered capable of reducing the basic cost of providing electricity (BPP). This will impact the selling price of electricity to customers which is cheaper. VP of Electricity Digitalization, PLN Digital Management Division, Agus Tri Susanto, stated that currently his party has a long-term plan regarding which coal plants will be shut down, but in terms of reducing carbon emissions in the electricity sector, PLN does not want to immediately shut down the CFPPs because they still want to maintaining domestic energy supply and security. 

Government planning to stop the operations of two Coal-Fired Power Plants (CFPPs) sooner than originally planned

CNBCIndonesia.com wrote about the Government planning to stop the operations of two Coal-Fired Power Plants (CFPPs) sooner than originally planned. Among them are Pelabuhan Ratu CFPP and Cirebon-1 CFPP. Deputy Chairman of Commission VII DPR RI (Indonesia Parliament), Eddy Soeparno, explained that at least to realize the cessation of operations of the two CFPPs, the funds needed reached IDR 25 trillion. In detail, the Pelabuhan Ratu CFPP is IDR 12 trillion and the Cirebon-1 CFPP is IDR 13 trillion. However, the use of APBN (State Budget) funds is considered not strong enough to cover early retirement, therefore there is a need for other funding sources that can be used to support the CFPP’s early retirement program. For example, funding through the Just Energy Transition Partnership (JETP) scheme and support from the Asian Development Bank (ADB).

 

Kontan.co.id wrote about the Just Energy Transition Partnership (JETP) Secretariat which will pursue the completion of a comprehensive investment and policy plan (CIPP) document before the Conference of the Parties 28 (COP-28) in Dubai, United Emirates Arabia at the end of November. Director of Communications JETP Secretariat, Adhityani Putri, stated that her party had entered the final or final stage of the process of finalizing JETP's comprehensive investment planning and policy documents. In the midst of the ongoing CIPP JETP process, the Indonesian government continues to lobby developed countries that are members of the IPG to channel some of their money into early retirement projects for coal plants in Indonesia. On the other hand, developed countries that are members of the International Partners Group (IPG) are reluctant to fund the CFPP’s early retirement program. In fact, it is hoped that JETP can be a catalyst that can encourage Indonesia to carry out an early retirement program. The Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Yudo Dwinanda, stated that the set fund of US$ 20 billion is equivalent to IDR 314 trillion (exchange rate of IDR 15,700/USD) for the energy transition process is not simple until now the coal plant retirement program is in the funding JETP is still being discussed.

 

WartaEkonomi wrote about the Secretary of the Directorate General of Electricity, Ida Nuryatin Finahari, who said that achieving national energy security is a top priority for all countries, including Indonesia. The energy transition challenge is an important focus in order to overcome global climate change. The Indonesian government has committed to reducing GHG emissions as outlined in the Nationally Determined Contribution (NDC) and continues to reinforce its commitment conveyed at COP 26 to contribute to accelerating the realization of global Net-Zero Emissions, and also at COP 27 through Enhanced NDC 2030 with increased targets from the energy sector to 358 million tons of CO2e from 29% to 31.89% with its own capabilities, and from 41% to 43.20% with international support. This is in line with the commitment at the G20 meeting in Indonesia in 2022 to achieve Net Zero Emissions (NZE) by 2060 as outlined in the Bali Compact and Bali Roadmap which are used as a guide in carrying out the energy transition to achieve stability, transparency and affordability of the energy market. To carry out this commitment, the Indonesian Government is optimizing the supply of electricity from New Energy and Renewable Energy (EBET) sources, as well as regulating demand by implementing energy efficiency. 

PT PLN starting to implement coal phase down at the Suralaya 1 to 4 Coal-Fired Power Plant (CFPP) in order to reduce carbon emissions

Tempo.co wrote about the Minister of National Development Planning (PPN)/Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa who revealed that the financing for early retirement of coal-fired power plants was not yet final. Suharso did not explain further the funding plans through the Just Energy Transition Partnership aka JETP. JETP comes from the G7+ developed countries led by the United States and Japan. According to Suharso, countries that have promised to channel funding through JETP have not yet adapted to the conditions on the ground regarding how to participate.

 

Kontan.co.id wrote about PT PLN starting to implement coal phase down at the Suralaya 1 to 4 Coal-Fired Power Plant (CFPP) in order to reduce carbon emissions. Later, the electricity supply from this coal plant will be replaced with renewable energy. Overall, the Suralaya Power Generation Unit (PGU) operates 7 CFPP units with a total installed capacity of 3,400 MW or the equivalent of 3.4 GW, which contributes around 18% of Java-Bali's electrical energy needs. With a transmission of 500 kV, the plant consumes approximately 35,000 tons of coal per day. PT PLN's Director of Risk Management, Suroso Isnandar, explained that currently the Suralaya 1 to 4 plants have entered the coal phase down period gradually and are adjusting to fluctuations in the existing electricity load. Later, the Suralaya I to IV plants will enter a gradual reduction in generating capacity at the end of this year and will be shut down. To replace the decline in electricity supply from Suralaya, PLN will rely on green electricity supplies from other sources, one of which is the Cirata Floating Power Plant with a capacity of 192 Megawatt peak (MWp).