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.