A way forward to reduce greenhouse gas emissions from Indonesia’s coal-fired power plants

25 August 2020

USAID through its Indonesia Clean Energy Development II (ICED II) in collaboration with two directorates of Ministry of Energy and Mineral Resources (MEMR) held a seminar to introduce Performance and Greenhouse Gas Benchmarking (GHG) for Thermal Power Plants on August 24, 2020. A total of 162 participants from State Electricity Company (PLN), MEMR, Ministry of Environment and Forestry (MoEF), independent power producers (IPPs) and other professional organizations attended the seminar in-person and virtually.

During the event, USAID ICED II presented its final report on “Performance and GHG Benchmarking for Thermal Power Plants”. The report contains key findings on low performance and high GHG emissions of coal-fired power plants in Indonesia. It also has recommendations for mitigation actions to implement energy efficiency and GHG emission reduction in coal-fired power plants. USAID ICED II proposed sustainable energy efficiency scenario to address the low performance issue and to reduce GHG emissions in Indonesia’s coal-fired power plants. This includes a set of mitigation actions that enable coal-fired power plants to implement the scenario with low to medium-risk investment costs of Rp21,684 billions with seven months payback period.

The findings and recommencations of this report drew a lot of interests from MEMR and PLN, although actual implementation of the scenario would pose some challenges as well as raise other technical and financial issues that require careful and thorough assessments.