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Bisnis.comJAKARTA — The Ministry of Energy and Mineral Resources (ESDM) reviews the reduction program capacity factor, aptitude factor (CF) steam power plant (PLTU) coal in a context of unclear financing commitments in favor of the Just Energy Transition Partnership (JETP) for the early decommissioning of current fossil generators.

Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana said his ministry was also studying the CF reduction plan or gradual reduction of coal This while demanding the commitment of JETP countries to finance the early retirement of the PLTU.

“But this subject regarding the contracts that PLN is aware of,” Dadan said when meeting at the Ministry of Energy and Mineral Resources, Jakarta, Wednesday (10/11/2023).

capacity factor, aptitude factor Production is the comparison between the average capacity in megawatts (MW) of production during a certain period and the installed capacity.

The project was described by PT Perusahaan Perusahaan Perusahaan PerusahaanELerang Negara (Persero) or PLN through the Accelerated Renewable Energy with Coal Phase Down (ACCEL Re Coal Phase Down) scenario.

In this scenario, the PLN predicts that additional renewable energy production (EBT) could reach 62 gigawatts (GW), or 75% of installed production capacity by 2040.

At the same time, gas producers will occupy 25 percent of the national production capacity in the Revised Business Plan for Electricity Supply (RUPTL) until 2040.

On the other hand, Dadan said, his ministry was still recently trying to access cheap loans from JETP for the PLTU early retirement program.

“Everything still works, everyone uses good language,” he said.

Previously, Kamia Handayani, Senior Vice President of Energy Transition and Sustainability of the PLN, said that the PLN would gradual reduction of coal decreasing capacity factor, aptitude factor PLTU.

“We need to gradual reduction “In PLTUs, we do not stop them immediately, we reduce the capacity factor of PLTUs, so we reduce the production of PLTUs, which can pave the way for EBT to enter the system,” said Kamia at the Indonesia Renewable Energy and Climate Summit. -Netherlands (RECSIN) in Jakarta, Monday (09/10/2023).

PLN took this maneuver because the international financial commitment to finance compensation for early retirement plans of coal-fired power plants is unclear to date. Kamia pointed out that the company would adopt a more gradual scenario for EBT transition via PLTU early retirement if it obtains cheap loans from international institutions, such as the JETP commitment.

“That is why in this scenario we do not include early retirement of the PLTU, we will stop the PLTU when its operational period is over, we will take early retirement unless there is confirmation of international funding,” he said.

As is known, the climate pact which is part of the JETP partnership has promised to provide joint funds of 20 billion US dollars, equivalent to IDR 310.7 trillion (assuming an exchange rate of IDR 15,535 per US dollar) from the public and private sectors over the next 3 to 5 years to help finance Indonesia’s energy transition, including initial plans for early retirement of PLTUs.

The JETP financing program includes $10 billion from public financing commitments and $10 billion from private financing coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ), which includes Bank of America, Citi, Deutsche Bank, HSBC, Macquarie. , MUFG and Standard Chartered.

Meanwhile, the JETP partnership led by the United States and Japan includes other G7 member countries, namely Canada, England, France, Germany and Italy, as well as Norway and Denmark .

The agreement was signed in November 2022 on the sidelines of the G20 summit in Bali, following the launch of the JETP secretariat in February 2023. After delaying the publication of the JETP investment plan last month, the government revealed that donor countries have recently been uninterested. in financing the PLTU early retirement program in Indonesia.

Deputy for Investment and Mining at the Coordinating Ministry of Maritime Affairs and Fisheries Septian Hario Seto said Western countries are actually not ready to fund pensions for Indonesia’s coal-fired power plants. The lack of consensus on this plan could potentially delay PLTU emissions reductions in Indonesia.

“During the discussion it became very clear that they were not keen on funding early retirement,” Septian was quoted as saying by ReutersMonday (9/25/2023).

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