COMPARATIVE STUDY BETWEEN RETIREMENT COAL POWER PLAN AND CARBON CAPTURE & STORAGE TO THE FINANCIAL STRUCTURE OF PT PLN (PERSERO)

• Main Author: Melati, Dewi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80880
• Institution: Institut Teknologi Bandung

Energy transition is not just a step but a crucial leap towards adopting sustainable and environmentally friendly energy practices. Through its Nationally Determined Contribution (NDC), the Indonesian government has made a resolute pledge to reduce greenhouse gas emissions by 31.9% independently by 2030 and 43% with international support. This commitment, backed by the state-owned electricity provider PLN, underscores the gravity of the situation and the importance of achieving these emission reduction targets outlined in the NDC. The RUPTL 2021- 2030 launch further amplifies this commitment, highlighting PLN's aim to reach a 23% renewable energy mix by 2025. Coal power plants are Indonesia's largest electricity generation source and contribute the most to emissions. Therefore, in the spirit of energy transition, reliance on coal power plants must be reduced and replaced with more environmentally friendly power generation options. This study meticulously investigates the multifaceted aspects of transitioning from coal-fired power plants to renewable energy sources. It is underscored by a strategic emphasis on the retirement of coal power units, capital expenditure analysis for their replacement with renewable energy plants, and the integration of Carbon Capture and Storage (CCS) systems. A primary objective is to identify the criteria for prioritizing the retirement of coal power plants. These criteria include grid system reliability, technological advancements, and the operational age of the facilities. The study further examines the economic implications of replacing decommissioned coal plants with renewable energy sources. The investment will positively impact PT PLN's financial structure and demonstrate a sustainable financial strategy. The research also explores the benefits of CCS implementation in operational coal plants, highlighting its capacity for reducing CO2 emissions, generating revenue through carbon trading, and cost savings. This approach facilitates a smooth energy transition and aligns with Indonesia's commitments to reducing greenhouse gas emissions.