Indonesia have to be extra open over coal energy shutdown plans -IEEFA By Reuters


© Reuters. FILE PHOTO: Coal is seen as a heavy equipment unloads it from the barges right into a truck to be distributed, on the Karya Citra Nusantara port in North Jakarta, Indonesia, January 13, 2022. Image taken January 13, 2022. REUTERS/Willy Kurniawan/File Photograph

JAKARTA (Reuters) – Indonesia wants to enhance transparency of its energy plant shutdown plans, the Institute for Power Economics and Monetary Evaluation (IEEFA) stated on Friday, because the nation launches at the least 5 power transition schemes.

Indonesia has in current months introduced agreements with worldwide teams to finance its transition away from coal into renewable power, together with a $20 billion deal organized by G7 nations underneath the Simply Power Transition Partnership (JETP) and the Local weather Funding Fund’s (CIF) $500 million allocation of concessional financing.

Whereas particulars of a few of the schemes are nonetheless being negotiated, CIF along with the Indonesian authorities have printed formal particulars of the programme’s funding scheme.

The IEEFA report stated that underneath the CIF programme, state-run Perusahaan Listrik Negara (PLN) would shut down 9 coal energy vegetation with a complete 4.9 gigawatt of capability, however some have been already “very previous” and “past their financial helpful life by 2055”, the yr by which they’re resulting from be decomissioned.

Among the energy vegetation proposed by PLN can be 40 by 2025, the common lifetime of such services, and the utility ought to retire and write them off, the report stated. PLN didn’t instantly reply to a request for remark.

“The important thing flaw within the presentation of the checklist of vegetation to retire is a scarcity of disclosure on the choice standards,” Elrika Hamdi, power finance analyst at IEEFA, stated within the report.

“An inexpensive stage of transparency and disclosure is required to justify why some vegetation are higher than others,” she stated, including that the extent of air pollution generated and the general marginal price of operation needs to be key components.

The identical concern applies to the shortage of disclosure on the choice technique of the Asian Growth Financial institution’s (ADB) first potential transaction for an early coal energy plant retirement, Hamdi stated.

Indonesia, the ADB and a non-public energy agency introduced final month they’re teaming as much as refinance and prematurely retire a 660-megawatt energy plant in West Java.

The report added that with all of the schemes working concurrently and the lengthy lead time of every transition, Indonesia additionally wants to make sure sturdy governance and long run political dedication.


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