New captive power plants fueled with coal may be a stumbling block for Indonesia’s effort to cap power sector carbon emissions and get international financial support for its energy transition.
Southeast Asia’s largest economy needs to cap annual carbon emissions from the power sector at 290 million tons, a requirement for accessing US$20 billion through the Just Energy Transition Partnership (JETP).
A captive power plant supplies electricity for a specific industrial or commercial facility and is typically managed by the owner of that facility. It makes the user independent of the public power supply.
According to Bhima Yudhistira, director of the Center of Economic and Law Studies (CELIOS), the technicalities over the peak emissions target from the power sector may be a huge hindrance to the landmark climate financing deal.
He also says that it is urgent for the government to revise Presidential Regulation No. 112/2022 on renewable energy, implemented in September last year.
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