Indonesia shuts down 800 coal-fired power plants to achieve net-zero emissions by 2060

JakartaIndonesia plans to close 800 coal-fired power plants as part of its commitment to achieve net zero emissions (NZE) by 2060. These plants will be replaced by gas-fired power plants and biomass energy sources.

Wiluyo Kusdwiharto, director of project management and renewable energy at state-owned utility PLN, announced this strategy on Thursday during the plenary session of the Indonesia International Sustainability Forum (ISF) 2024 in Jakarta.

The session, entitled “The Future of Energy Transition in Emerging Markets,” highlighted Indonesia’s roadmap to achieving its NZE target.

“We have a clear plan to become emission-free by 2060. This includes replacing 800 coal-fired power plants with gas-fired power plants and implementing biomass programs,” Wiluyo said.

However, Wiluyo pointed out that achieving this goal would require significant investments estimated at between US$700 billion and US$1 trillion, which would support the development of 423 gigawatts (GW) of green electrification, or electricity based on renewable energy.

To date, PLN has cancelled 13.3 GW of coal-fired power plants originally planned under the Power Supply Business Plan (RUPTL) 2019-2028. In addition, 1.2 GW of coal-fired power plant capacity was cancelled through Power Purchase Agreements (PPAs) and 1.1 GW of coal-fired power plants were replaced with renewable energy sources.

Wiluyo also highlighted PLN's De-Dieselization program, which aims to replace diesel-fired power plants (PLTD) with cleaner energy sources. This involves creating hybrid power plants across Indonesia that combine diesel with renewable energy sources such as photovoltaic (PV) panels and batteries.

“We have about 5,000 diesel power plants across Indonesia and are converting them into hybrid systems with renewable energy. Through this program, we have reduced cumulative emissions by about 3.7 million tons of CO2,” Wiluyo added.

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