TEMPO.CO, Jakarta - Energy and Mineral Resources Minister will push for clean energy use amid growing pressure on Indonesia over the reduction of coal use for power plants. Last week, European financial service companies canceled their investment in coal-fired power plant (PLTU) projects for environmental reasons.
Energy and Mineral Resources Ministry spokesman Sujatmiko said that the government is aiming to cut the target of coal-fired power generation from 42,000 megawatts (MW) to 35,000 MW by 2025. “On the other hand, the use of natural gas will increase by 24 percent,”
Moreover, Sujatmiko said that the government will step up development of mine mouth coal thermal power plants. He said that it was more efficient and cleaner because it will be located at mining area.
Earlier, European financial service companies withdraw from financing Indonesian PLTU projects. Having agreed to limit global warming to 2 degrees Celcius as set forth in Paris COP 21 agreement, Societe Generale has canceled plans to finance development of PLTU Tanjung Jati B in Jepara, Central Java. Credit Agricole has also canceled the loan for PLTU Jawa 1 project in Cirebon with a capacity of 1,000 MW.
Energy Minister Ignasius Jonan said that clean energy will be the government’s main focus. However, he said that the government will have to evaluate the price to make it competitive against fossil fuel.
State-owned electricity company PT PLN procurement director Supangkat Iwan Santoso confirmed the development of mine mouth coal steam power plants will be included in the planned revision to Electricity Power Supply Business Plan for 2017-2026 term. “We have submitted the proposal,” he said.