PLN to Shut Down 800 Coal-Fired Power Plants to Achieve Net Zero Emissions

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6 September 2024 14:12 WIB

TEMPO.CO, Jakarta - Indonesian electricity company PLN announced plans to replace 800 coal-fired power plants (PLTU) with gas-fired power plants (PLTG) in order to achieve net zero emissions by 2060.

“We have a roadmap to achieve zero emissions by 2060 by replacing 800 coal-fired power plants with gas-fired power plants, and we have a biomass program [to achieve the goal],” said Wiluyo Kusdwiharto, PLN's Director of Project Management and New and Renewable Energy, in the Plenary Session of the Indonesia International Sustainability Forum (ISF) 2024 themed Future of Energy Transition in Emerging Economies in Jakarta on Thursday, September 5, 2024.

PLN has already taken steps towards decarbonization by canceling the construction of the 14.5-gigawatts coal-fired power plant, which had been included in the 2019-2028 Electricity Supply Business Plan (RUPTL) and the 1.2-gigawatts coal-fired power plant through Power Purchase Agreements (PPAs). Additionally, the company has replaced the 1.1-gigawatts coal-fired power plant with renewable energy sources.

Wiluyo also explained that the PLN has replaced diesel power plants (PLTD) with cleaner alternatives as part of the De-dieselization Program by creating hybrid PLTDs powered by renewable energy sources.

“We have around 5,000 diesel power plants throughout Indonesia and we replace them by creating hybrid PLTDs with renewable energy, such as batteries. So the total cumulative emissions through this program are around 3.7 million tons of CO2,” said Wiluyo.

However, to achieve the zero carbon emission target, Wiluyo said Indonesia needs an investment of US$700 billion or Rp10,767 trillion to develop 423 gigawatts of new renewable energy. This investment amount is significantly higher than the 2025 Draft State Budget (RAPBN), which stands at Rp3.613.1 trillion.

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