As the G20 summit of the top 20 economies approaches, the host country Indonesia is forced to unveil a more aggressive plan to clean up carbon emissions and reduce the use of coal.
The role of Indonesia, the world's largest coal exporter and carbon emitter, in achieving zero emissions by 2050 is key to avoiding catastrophic global warming, but the government has set a net zero emissions target by 2050. 2060. More time than necessary to meet international carbon targets.
According to a new study The decommissioning of Indonesian fleet of 118 coal-fired power plants will cost $ 37 billion, helping the Southeast Asian nation run out of coal stocks by 2040, a decade ahead of schedule, according to the aimless financial analyst. profit for profit TransitionZero. with international climate goals.
This will save 1.7 billion tons of carbon dioxide, about three years of Indonesia's annual carbon emissions.
Transition Zero has calculated that coal pensions will cost less than coal subsidies, with Indonesia spending $ 10 billion in just one year, based on last year's data.
Indonesia uses subsidized coal to generate electricity and guarantees fixed payments to power plant owners.
TransitionZero also calculated that the use of coal would be relatively cheap, given that the country's first carbon capture and storage (CCUS) project, the BP Vorwata CCUS development, would cost $ 3 billion.
About 38% of Indonesia's energy comes from coal, which is a growing part of the energy mix, although the government plans to reduce its share of all energy sources to 30% by 2025.
The Ministry of Energy announced last year that coal consumption in the country is on the rise due to increased demand for electricity due to economic growth.
Indonesia is expected to announce its coal phase-out plan next month at the G20 summit in Bali.
Transition Zero analyst Jacqueline Tao told EcoBusiness that decommissioning Indonesia's first coal-fired power plant will be "the biggest challenge," but once the first plant is closed, shutting down the others will be easier.
The "low fruit" to be phased out, he said, are the coal-fired power plants serving the Java Bali power grid, which generate about 50 percent of the electricity above demand.
PLN, the Indonesian national electricity company, which owns and operates all of the islands' transmission and distribution grids, said last week that it will prioritize decommissioning old coal-fired and zero-emission power plants.
Speaking with EcoBusiness at an event in Jakarta on Tuesday, PLN Director of Retail and Commerce Eddy Shrimulianti said that shutting down coal is a "long-term plan" for state utility and that any future capacity increases. would be in the future. stands out. Natural gas. , a less polluting fossil fuel than coal.
Just a switch?
The decommissioned coal-fired power plants require 245 coal workers to operate each power plant in Indonesia, which equates to 1.3 jobs per megawatt (MW) of coal-fired power plant.
But Transition Zero analysis shows that for every megawatt of solar power, two jobs are created, and five jobs are created for every megawatt of offshore wind power, including construction and project development and operational and ongoing maintenance.
"While not all coal closures will be accompanied by the replacement of renewable power plants, it is fair to say that the decarbonisation of the energy sector will lead to a net increase in electricity generation jobs," the report said.
The report says funding for coal miners' retirement projects should include the hiring and reassignment of former coal miners.
Indonesia is expected to be eligible next month for funding under the Partnership for a Just Energy Transition launched last year by the EU and other countries to help developing countries switch to clean energy at the COP26 climate talks.
