<article><p class="lead">Indonesia has raised its new and renewable energy generation target to 51.6pc from an <a href="https://direct.argusmedia.com/newsandanalysis/article/2222599">earlier proposal of 48pc</a> in its 2021-30 electricity plan, with an aim of reducing its reliance on thermal power. </p><p>The country's energy ministry (ESDM) validated the 2021-30 generation plans of state-owned utility PLN. More than half of the nation's planned 40.6GW generation capacity to 2030 is being targeted from renewables, the ESDM said. </p><p>The 10-year plan does not have a provision for new coal-fired power plants except those already committed to and under construction. This creates space for the development of renewables to replace coal-fired generation, the ESDM added. But Indonesia will also add 14.7GW of power capacity, primarily coal-fired generation, over the next two years as these projects were announced earlier and are already under construction. </p><p>Indonesia had total generation capacity of 73.34GW as of June this year. Of this, 47pc is coal-fired, gas-fired generation at 28pc and hydropower at 9pc. The rest comes from diesel-fired generation, waste-based power units and renewables. The share of renewables was 3pc or 2.21GW. </p><p>Indonesia is the world's largest thermal coal exporter and <a href="https://direct.argusmedia.com/newsandanalysis/article/2183405">shipped 407mn t</a> in 2020 from output of 563mn t. </p><p>Jakarta has taken steps to reduce greenhouse gas (GHG) emissions, starting with a ban on new coal-fired power projects from 2023, along with plans to retire ageing coal-fired plants. New tax legislation with a provision for carbon taxation has been submitted to the People's Representative Council and has been marked as a priority bill.</p><p><a href="https://direct.argusmedia.com/newsandanalysis/article/2238895">Indonesian coal consumption</a> is projected to increase for the next nine years as new generation capacity is brought on line, despite a government drive to reduce GHG emissions, according to PLN. </p><p>The increase will come from the under-construction coal-fired power plants. These additional power plants are expected to increase Indonesia's annual power sector coal consumption by 36.7pc from now to 156.3mn t by 2030.</p><p>But Indonesian <a href="https://direct.argusmedia.com/newsandanalysis/article/2238445">coal output could fall</a> by as much as 47pc from 610mn t in 2019 to 322mn t by 2050 under a low-carbon scenario compatible with the 2015 Paris climate agreement target, according to a long-term projection by the UN Framework Convention on Climate Change.</p><p class="bylines">By Ajay Modi</p></article>
