Lack of funding from developed countries, including the United States (US), for Indonesia's energy transition plan

CNBCIndonesia.com wrote about the Government, in this case the Ministry of Energy and Mineral Resources (ESDM), opening its voice regarding the lack of funding from developed countries, including the United States (US), for Indonesia's energy transition plan, including early retirement of coal-fired power plants. The Director General of New, Renewable Energy and Energy Conservation (Dirjen EBTKE) of the Ministry of Energy and Mineral Resources, Yudo Dwinanda Priaadi, said that energy transition funds through the Just Energy Transition Partnership (JETP) scheme worth US$ 20 billion or around Rp. 300 trillion are quite large funds. So the process takes time. However, currently the government through the JETP secretariat is preparing a Comprehensive Investment Plan and Policy (CIPP). Where, through CIPP, the government and the International Partners Group (IPG) discussed Indonesia's energy transition process.

 

Petrominer.com wrote about early retirement of coal power plant operations from their natural retirement year which is considered to have lower costs than extending the life of coal power plants with the addition of carbon capture and storage (CCS) technology. This was conveyed by Fadhil Ahmad Qamar, Program Staff for the Clean, Affordable, and Secure Energy (CASE) project for Southeast Asia (SEA), Institute for Essential Services Reform (IESR). On the same occasion, IESR Senior Analyst, Raditya Wiranegara, also emphasized again the importance of the social and economic aspects of early retirement for coal PLTU operations, especially if the economic activities carried out by local communities are highly dependent on the operation of coal power plants. Apart from that, policy makers also need to use a data-based policy formulation approach regarding plans to stop operating coal power plants. Both data on the generating assets themselves and external costs related to their operations, such as social costs due to local pollution produced by coal-fired power plants.

 

Bisnis.com wrote about the Ministry of Energy and Mineral Resources (ESDM) currently reviewing a scheme to reduce the capacity factor (CF) of coal-fired steam power plants (PLTU) amidst the unclear funding commitment of the Just Energy Transition Partnership (JETP) for early retirement of fossil plants At the moment. Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said that his ministry was also studying the CF or coal phase down reduction scheme while seeking the commitment of JETP countries to fund early retirement of coal power plants. The scheme was outlined by PT Perusahaan Perusahaan Listrik Negara (Persero) or PLN through the Accelerated Renewable Energy with Coal Phase Down (ACCEL Re Coal Phase Down) scenario. Under this scenario, PLN projects that additional new renewable energy (EBT) generation could reach 62 gigawatts (GW) or 75 percent of the installed generating capacity by 2040. PLN took this maneuver because the international funding commitment to finance compensation for early retirement plans for coal-fired power plants is unclear to date.