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Bisnis.comJAKARTA — National Electricity Company (Persero) or PLN currently reviewing discount programs capacity factor, aptitude factor (CF) or production capacity of a steam plant (PLTU) coal (gradual reduction of coal) to pursue the goal of zero carbon emissions.

The project is described by PLN through the Accelerated Renewable Energy with Coal Phase Down (ACCEL RE Coal Phase Down) scenario, with a projection of additional new renewable energy (EBT) production reaching 62 gigawatts (GW) or 75 percent of the 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.

“It will be done in stages, yes and it will also be done with a study, so later we will have to look at this system first, if the PLTU is reduced, what will be the impact,” said the Executive Vice President of the PLN. Energy transition and sustainability Kamia Handayani during his recent meeting in Jakarta, quoted on Sunday (10/22/2023).

Kamia said the company is currently studying the possibility of reducing the CF of PLN generators and independent electricity producers (IPP). However, Kamia said, the option to reduce the CF of power plants owned by IPPs or private plants is relatively difficult to implement as they are bound by contracts. take or pay Right now.

“IPP will have contract issues, so it will be easier with PLN, but for IPP there need to be deeper discussions about whether there is will to support that,” he said.

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 the EBT transition via early retirement of PLTUs if it received cheap loans from international institutions, such as the Just Energy Transition Partnership pledge ( JETP). However, to date, the commitment to finance compensation for early departures in favor of the PLTU has not yet been obtained.

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 the energy transition in Indonesia, including the initial plan for early retirement of PLTU.

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.

Meanwhile, according to IEEFA energy analyst Putra Adhiguna, the reduction option capacity factor, aptitude factor The coal plant currently supported by the PLN is considered risky due to the lack of direct funding from JETP for compensation for early retirement from coal plants.

Putra argued that the decision to phase out CF coal plants would be in direct conflict with commercial issues with supplier partners and IPPs.

“Reducing the PLTU share is not easy because the main thing we are facing is a trade agreement that has legal implications,” Putra said when contacted on Tuesday (10/10/2023).

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