Indonesia’s Perusahaan Listrik Negara (PLN), a state-owned electricity provider, has committed to becoming carbon neutral by 2050. PLN aims to gradually phase out thermal power plants and substitute for renewable energy in its grids. In addition, PLN plans to build new solar and wind power stations, co-fire biomass with coal in current coal plants, and transform diesel-fired power plants to alternative energy power plants.
PLN intends to transform 2,130 diesel-fired power plants with a combined capacity of 2 GW to renewable energy power plants. The group will convert 200 power plants with a total capacity of 225 MW during the first phase starting in 2021. The first plants are scheduled to start operating by 2024 and the rest will be due to completion by 2026. PLN aims to introduce co-firing at 52 coal plants across the country by 2025 to minimise pollution. The plan would require 9 million tonnes of biomass and produce 10.6 GWh. PLN has started co-firing at 11 coal power plants to date. PLN is collaborating with state-owned forestry company PT Perkebunan Nusantara III (PTPN), state-owned forestry company PT Perhutani, and state-owned agriculture company PT Sang Hyang Seri to ensure a steady supply of biomass.
Indonesia had pledged to build 35 GW of new power capacity under its 2015 energy plan. Of the total, 20 GW of power will be generated from coal projects. These are the only coal projects that will be completed. Most of the plants that are under construction have been backed by overseas coal financing from China, South Korea or Japan.