Indonesian power-sector coal demand to rise by 20mn t

Market: Coal, Electricity
09/11/26

Indonesia's growing domestic power demand will drive its thermal coal consumption higher next year, with state-owned utility PLN Energi Primer Indonesia (EPI) expecting power-sector coal demand to increase to 174mn t from this year's estimated 154mn t.

EPI's coal-fired plants are expected to account for 98mn t of coal demand next year, while independent power producers are expected to consume 76mn t. EPI did not disclose projected consumption for captive coal-fired plants as the company is responsible for sourcing coal only for grid-connected power plants.

EPI noted that coal demand in the power sector is dominated by medium calorific (CV) coal. In 2027, medium-CV coal consumption in the power generation sector is expected to reach 89mn t, while low-CV coal consumption will reach 76mn t. Only 8.51mn t of high-CV coal is projected to be consumed. This is because Indonesia's power plants are designed to burn GAR 4,000-5,000 kcal/kg coal as their fuel source.

But Indonesia's coal reserves are dominated by low-CV coal, with the energy and mineral resources ministry estimating low-CV coal reserves at 24.06bn t, medium-CV coal at 4.54bn t, and high-CV coal at 3.36bn t.

The low availability of medium-CV coal has already impacted Indonesia this year, with the Java grid experiencing rotating power interruptions because of insufficient power supply resulting from a shortage of mid-CV coal in power plant stockpiles, forcing the plants to run at a de-rated capacity.

To address this, EPI is developing a programme that will help improve the plants' ability to utilise lower-CV coal, including GAR 3,600 kcal/kg coal.

A total of 16 power plants will be chosen for the programme but EPI did not disclose the specific units, saying that technical studies were still being done. One of the key issues is to ensure that the plants can use lower-CV coal without compromising combustion efficiency, equipment reliability and available electricity supply to the grid.

The coal CV switching programme will be deployed in stages to ensure that any negative impacts to the grid will be minimised.

By Antonio Reyes

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Paraguayan president resigns on banking scandal

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