<article><p class="lead">Indonesia's energy and mineral resources ministry has raised the country's target to generate electricity from new and renewable energy (EBT) from 30pc to 48pc, which includes co-firing coal with biomass.</p><p>State-owned utility PLN's draft electricity generation plan for 2021-30 outlined the increase of EBT generation to 48pc or 19,899MW compared with a previous target for 2019-28 of 30pc. It also stated that the country plans to add 41GW of power generation capacity over the next 10 years. </p><p>Various options to achieve this target are being discussed, director-general of electricity Rida Mulyana said. This includes the conversion of diesel-fired power plants to EBT plants, co-firing coal with biomass at power plants, retirement of ageing power plants and relocation of others.</p><p>Some Indonesia-based suppliers saw higher domestic demand for palm kernel shell (PKS) biomass as some coal-fired power plants finished <a href="https://direct.argusmedia.com/newsandanalysis/article/2147158">test co-firing</a> with biomass last year. They also pointed out the price to sell PKS domestically could be higher because of the country's current record-high export tax and levy. </p><p>Indonesia's export tax and levy increased to <a href="https://direct.argusmedia.com/newsandanalysis/article/2220219">$35/t for June</a> as the June crude palm oil benchmark price rose above $1,200/t.</p><p>Indonesia is the biggest PKS exporter and the third-largest wood pellet exporter in Asia-Pacific after Vietnam and Malaysia. The country exported 3.17mn t of PKS and 311,000t of wood pellets in 2020.</p><p class="bylines"><i>By Sam Hong</i></p></article>
