Early Retirement of Coal-Fired Power Plants, Indonesia Considers Economic Aspects

August 22, 2024, 03.05 AM | Reporter: Filemon Agung

ILUSTRASI. Aerial photo of the construction of the Java 9 and 10 Steam Power Plant (PLTU) in the Suralaya area, Cilegon, Banten, Wednesday (7/31/2024). The construction progress of the Ultra Super Critical or PLTU Jawa 9 and 10 has reached more than 80 percent and is targeted for completion in 2025. Later, this PLTU will be the first power plant in Indonesia to use green ammonia and green hydrogen alongside coal in its production process. ANTARA FOTO/Galih Pradipta/aww.

JAKARTA, Indonesia — The Ministry of Energy and Mineral Resources (ESDM) has confirmed that the early retirement plan for Steam Power Plants (PLTU) is still in progress.

Dadan Kusdiana, the Secretary General of the Ministry of ESDM, stated that the early retirement of coal-fired power plants is still guided by existing regulations, namely Presidential Regulation (Perpres) 112 of 2022 on the Acceleration of Renewable Energy Development for Electricity Supply.

Reportedly, as many as 13 PLTUs are planned to be retired early, taking into account economic considerations and avoiding disruptions in supply and electricity price increases.

"In there (Perpres 112 of 2022), there are several criteria that are regulated, such as age, performance, efficiency, and productivity. So we look at it from age, performance, emissions, so we already have a list of those 13 PLTUs," said Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana, on the sidelines of The 2nd Asia Zero Emission Community (AZEC) event in Jakarta, Wednesday (21/8).

Dadan added that the government is continuously seeking support to early retire PLTUs that meet the criteria to avoid disruptions such as an increase in the basic cost of electricity supply (BPP) and a shortage of electricity supply.

"We are still seeking support. Support because for early retirement, for early retirement we don't want the BPP to increase, a shortage of electricity, or the government's money to come out. So those are the three things we are guarding," Dadan continued.

According to him, support from other parties including countries is very much needed for the implementation of this program because the emission reduction program is a joint commitment.

Regarding which PLTUs will be retired early, Dadan explained that it has not yet been determined which PLTU, but in its implementation, it still refers to the Perpres and the economic considerations of the PLTU itself.

"13 PLTUs with a total capacity of 4.8 GW, all owned by PLN, we have not yet determined when this should be retired early. That's not yet. Because that will be based on the economy," Dadan concluded.