Indonesia's state-owned power generator PLN has entered into an initial agreement with the Paris-based IEA to further its plans to reduce its carbon footprint.
PLN aims to leverage IEA's expertise in finalising the Just Energy Transition Partnership Investment and Policy Plan (JETP IPP), which aims to accelerate Indonesia's coal energy phase out and speed up investments in renewable energy infrastructure. Indonesia will receive an initial $20bn over the next 3-5 years from its international partners such as the US, the EU, Japan and Canada under the JETP. The planned funding will consist of a mix of concessional loans, market-based loans, grants, guarantees and investments from public and private-sector entities.
The latest partnership with IEA is part of Indonesia's broader plan to reach net zero by 2060. The pact paves the way for PLN to utilise IEA's Global Energy and Climate model to generate sector-by-sector long-term plans to reduce emissions, the power utility said.
The initial agreement with the IEA will help in better categorisation of existing PLN power plants for either continuing operations or accelerated decommissioning, the utility said. The pact will also aid in identifying opportunities to expand renewable power generation and create a comprehensive energy transition roadmap. IEA's data and models could help Indonesia in its broader plans to lower emissions, PLN said.
Under a business-as-usual scenario with existing efforts to reduce emissions, PLN expects the power generation sector to produce up to 433mn t of carbon emissions by 2030. But Indonesia has outlined emissions from the power generation industry to be fall to 335mn t by 2030 under PLN's electricity supply business plan (RUPTL), which aims to reduce 1.6bn t of carbon dioxide emissions over the next 25 years.
