PT Perusahaan Listrik Negara (PLN), Indonesia's state-owned electricity company, plans to cease operations of several Coal-Fired Power Plants (PLTU) with a total capacity of 6.7 gigawatts (GW) by 2040.
"The early retirement mechanism for coal-fired PLTUs will be implemented gradually, both naturally and through early retirement, replacing them with new renewable energy," said PLN President Director Darmawan Prasodjo in a press release on Wednesday (19/10/2022).
"Of the total 6.7 GW to be terminated by 2040, 3.2 GW will cease operations naturally, while 3.5 GW will utilize an early retirement scheme," Darmawan explained.
PLTUs Eligible for Early Retirement
According to a research report by the Institute for Essential Services Reform (IESR) titled *Financing Indonesia's Coal Phase-Out*, as of May 2022, there were 86 coal-fired PLTUs operating in Indonesia with a total installed capacity of 40.2 GW.
This includes 26 coal-fired PLTUs (12.5 GW) owned by PLN, and 32 PLTUs (18.5 GW) owned by independent power producers (IPPs). The remaining 28 PLTUs (9.2 GW) are captive plants, owned by private companies and used solely for their own consumption (not sold to the public).
IESR assessed that 12 coal-fired PLTUs are eligible for early retirement in 2023:
1. Banten Suralaya Power Station (Banten): 1,600 megawatts (MW) capacity
2. PLN Paiton Power Station (East Java): 800 MW capacity
3. Cilacap Sumber Power Station (Central Java): 600 MW capacity
4. Cikarang Babelan Power Station (West Java): 280 MW capacity
5. Asam-Asam Power Station (South Kalimantan): 260 MW capacity
6. Bukit Asam Muara Enim Power Station (South Sumatra): 260 MW capacity
7. Ombilin Power Station (West Sumatra): 200 MW capacity
8. Tabalong Power Station (South Kalimantan): 200 MW capacity
9. Merak Power Station (Banten): 120 MW capacity
10. Tarahan Power Station (Lampung): 100 MW capacity
11. Bangka Baru Power Station (Bangka Belitung): 60 MW capacity
12. Tabalong Wisesa Power Station (South Kalimantan): 60 MW capacity
"These 12 coal-fired power plants, with a total capacity of 4.5 GW, can be retired early between 2022 and 2023 to help improve air quality, public health, and water resilience," stated IESR in its report.
"Some plants are eligible for closure due to their age and having reached the end of their economic life, such as Banten Suralaya and PLN Paiton in the Java-Madura-Bali system, Bukit Asam Muara Enim in the Sumatra system, and Asam-Asam in the Kalimantan system," it continued.
"Other plants have a poor track record due to their proximity to residential areas. The Cilacap Sumber and Ombilin PLTUs have been protested by residents due to fly ash/bottom ash causing respiratory problems," concluded IESR.