How can Indonesia decarbonise amidst expected energy consumption

EVENT COVERAGE: SIEW How can Indonesia decarbonise amidst expected energy consumption growth?

Energy consumption is expected to be four times higher in 2060.

Indonesia targets to be a developed country by 2045—a goal that will entail a significant increase in energy use, an expert said during the Singapore International Energy Week. With energy consumption being the highest contributor to carbon emissions, will the country’s 2060 net-zero goals then be compromised?

“We will have high economic development. If we increase our economic growth, and the implication is we know that this significant increase also in energy use,” Retno Gumilang Dewi, head of Center for Research on Energy Policy at Bandung Institute of Technology said.

Indonesia needs an economic growth of 5.64% annually from 2021 to 2025 and 6.15% from 2026 to 2030. Upon achieving this, Dewi forecasted that by 2060, final energy consumption will be 3.81 times higher compared to 2010, whilst electricity consumption will be 10.33 times higher than in the same period.

In the past decade, eIndonesia’s energy systems already contributed 38.3% to total carbon emissions.

Furthermore, according to a report by Climate Transparency, Indonesia’s emissions, excluding land use, increased 140% between 1990 and 2017, with the energy sector increasing the highest. Energy-related emissions in 2019 reached 581 metric tons of carbon dioxide equivalent, with the industrial sector contributing the most at 37% of the total emissions, followed by transport (27%), and electricity and heat generation (27%).

Reducing emissions

To address decarbonisation especially in the energy sector, Dewi said there is a need to aggressively improve efficiency in both the demand and supply side, which will lead to a 73% decline in the energy intensity of the gross domestic product by 2050, compared to 2010.

Decarbonisation of electricity through provisions of clean-/green-/low- and zero-carbon emissions energy, as well as the use of low carbon-emitting fuels and carbon capture and storage would also cut electricity emission intensity by 92% in 2050 from 2010.

She also said that electrification of end-uses such as the adoption of electric vehicles and substation of fossil-fuel based energy systems to electricity will also help in reducing fossil fuel combustions and reduce emissions “as long as the power generation is deeply decarbonised.”

This will then increase the electrification of end-uses by 23% in 2050 from 2010, she said.

Deep decarbonisation will also be a key driver in its transition to clean energy, noting that Indonesia is facing “a situation of uncertainty in deciding a transition” as the country is reliant on fossil fuels, particularly coal, when there is a need to increase renewable energy use.

“Aiming to a two-degree (Celsius) target, Indonesia has the opportunity to transition its energy system by steeply reducing the carbon intensity in all sectors of the economy. And this transition is known as a deep decarbonisation,” Dewi said.

To achieve this, there is a need for a negative carbon dioxide emission technology such as biomass energy and carbon capture and storage (CCS) or carbon capture, utilization, and storage (CCUS), Dewi said.

Deep-decarbonisation challenges

For the implementation of deep decarbonisation, Dewi said Indonesia needs to develop local capacity in renewables as it is difficult to install solar PV at homes, as well as wind power and bioenergy.

“[There is a] need to reduce coal use significantly because we know that our economies rely on coal and then the coal itself is related to the power stranded assets,” Dewi said.

“The negative impact could be lessened by [continuously] using coal but with a high efficiency system and also equipped with CCS or CCUS and co-firing with biomass,” she added.

Dewi said there is a need for the development of deep biofuels such as fatty acid methyl esters or FAME biodiesel, bio-hydrocarbons, bioethanol, palm oil gasoline, amongst others for transportation. It should also consider the use of sustainable raw materials.

Non-renewable power that uses more efficient fossil fuels such as integrated gasification combined cycle, along with renewable energy such as biomass cofiring and CCS/CCUS should also be practiced.

Aggressive development of renewable energy, like the introduction of solar panels, is also amongst the challenges in the implementation of deep decarbonisation. Aggressive decarbonisation will reduce the carbon footprint of electricity from the grid network, which will then result in a reduced carbon footprint of products manufactured using the same electricity from the grid.

Dewi noted that aggressive decarbonisation will reduce the barriers for Indonesian export materials to countries that have policies relating to the carbon footprint.

Decarbonisation of electricity and the use of low carbon-emitting fuels would cut electricity emission intensity by 92% in 2050

Jawa 7 CFPP: Most Successful Plant Construction in Indonesia and World’s Leading Coal-Fired Power Plant

It received both the Coal Power Project of the Year - Gold and Fast-track Power Plant of the Year - Gold trophies at the Asian Power Awards

Jawa 7 Coal-Fired Power Plant (Jawa 7 CFPP) is the first Ultra-Supercritical (USC) Power Plant to operate in Indonesia. It is built under the Independent Power Producer (IPP) Scheme by China Shenhua Energy, as the winner of Mega Project CFPP open bid that was held by PT PLN (Persero) in 2015, that later on merged to become China Energy Investment Company (CEIC). With 70% of shareholding CEIC joining the subsidiary of PT Pembangkitan Jawa-Bali, that is PT PJB Investasi with 30% of the shareholding, set up a Special Purpose Company under the name of PT Shenhua Guohua Pembangkitan Jawa Bali (PT SGPJB) which is officially established on 13 January 2016.

Jawa 7 CFPP Project has the capacity of 2 x 1.050MW located in Ternate Village, Kramatwatu District, Serang Regency, Banten Province with an investment value reaching US$1.88b or approximately IDR 26.8t. It has a high plant efficiency at ±45.04% with the largest installed MW capacity and uses the latest technology in Indonesia. The financial close of this project was achieved on 29 September 2016, becoming the first IPP in Indonesia to have its financial close process done in just 6 months.

Jawa 7 CFPP is the first project to build a power plant on deep volcanic ash and mud layer in Indonesia which adopts vacuum preloading, various types of pile foundation, post-grouting technology for cast-in-place piles and semi excavation and backfill back to the terminal embankment. A series of combinations of technological innovations, such as the combination of backfill and dynamic compaction resulted in successfully building a high-quality project under special geological conditions with a seismic acceleration of 0.33 g, as well as winning various provincial and ministry awards and QC results in foundation treatment.

The first casting of the Jawa 7 main building was carried out on 30 June 2017, and only required about 26 months to generate electricity for the first time on 03 September 2019. Through the series of continuous perfection processes during its construction, Unit 1 of Jawa 7 CFPP with capacity 1.050MW succeeded operate commercially on 13 December 2019, so that it is recorded to reach the Commercial Operation Date (COD) phase five months earlier from the target becoming the most successful project in the history of the construction of a power plant in Indonesia. After its COD, Unit 1 immediately operated for 302 days without shutting down, this is a new record for the longest operation for a 1000MW class plant. Meanwhile, Unit 2 of Jawa 7 CFPP started its production commercially on 23 September 2020.

Jawa 7 CFPP consumes low and medium calorific value coal ranging from 4000 to 4600 kcal/kg HHV (typically 4348 kcal/kg) with the largest mediumspeed coal pulverizer and the largest lignite boiler in the world (output of 3100 ton/hour, weighing 37,000 ton) that adopts the spiral water wall and rifled tubes technology which can increase the safety and reliability of the boiler along with combustion efficiency technology that results in low NOX

Jawa 7 CFPP Management uphold the mission to provide high-quality electricity that is safe, sustain, and environmental friendly with the corporate culture concept “One Family”

emissions and stable combustion even under low load conditions. It also uses Flue Gas Desulfurization (FGD) technology with an efficiency of more than 82% to reduce SOX concentration in the flue gas (<495 mg/Nm3). The three-phase integrated transformer has a maximum capacity of 1330 MVA and the double-row primary fan can power up to 4600kW.

The tubular belt conveyor transports the coal from the wharf to the power plant with the longest sea transportation distance in the world (about 4 km), the largest coal transportation volume per hour (2 x 3000 ton/hour), the fastest speed (5.6 m/s) and the largest pipe diameter (600 mm) in the world. This type of conveyor keeps coal dust from spilling into the environment and also protects the quality of coal from rain and heat caused by the hot sun. In the coal yard, a windbreaker dust net controller is also installed, it can protect coal from strong winds.

Jawa 7 CFPP Management uphold the mission to provide high-quality electricity that is safe, sustain, and environmental friendly with the corporate culture concept “One Family” that focus on work safety, innovation, environment protection, responsibility, and caring to create a harmonious relationship bet ween the company, employees, and local communities to become number 1 in Indonesia and the world.