Power Sector Decarbonization Strategies
But decarbonization faces several challenges in Indonesia and all
options need to be explored
Power sector decarbonization is facing technical
and economic constraints
Limited space to integrate RE
Complex island grid situation limiting potential for
imports
Excess power and potential carbon lock-in
Regulatory impediments
Average Cost of Electricity Generation under the three Transition scenarios
100
95
2021
2022
2023
$/MWh
ខ 8 ៨ ៨ ៖ ៖ ៖ ៖ ៖
75
3. Decarbonization
92.1
2. Coal phaseout @20
years...
1. NDC (RUPTL 2021-30)
2. Coal phaseout @20 years
2034
2035
2036
2037
2038
2039
3. Decarbonization
2040
but options are available
A scenario-based analysis focused on the Java-Bali grid was
carried out to assess decarbonization options for the next two
decades.
Three scenarios were assessed: Phasing down coal and scaling up
RE are central to reducing the carbon footprint of the power
sector.
Under the Coal Phase down scenario coal power generation would
move from 30% of the mix in 2040 in the baseline scenario to 5%
and emissions would be cut by 40% while the generation cost
would increase by 6% in 2040* compared to the baseline
scenario.
Under the more ambitious decarbonization scenario (emissions
cut by 70% in 2040 vs the NDC Scenario), coal is fully phased-out
in 2040 and the generation cost is 27% higher* than in the NDC
scenario.
*Not including the cost of coal plant retirementView entire presentation