Indonesia Silent Container Power Plant

Should captive power plants be phased out in Indonesia?

The large potential for the development of industrial estates with renewable energy in Indonesia adds to the urgency of stopping the construction of captive power plants. Weak regulations for the transition from coal are challenges to phase out captive power plants in Indonesia.

How many coal-fired plants are there in Indonesia?

Meanwhile, at the Weda Bay Industrial Park, five captive coal-fired plants have been built, and twelve plants are planned to provide a total of 3.8GW of coal power. The report highlights that across Indonesia, the captive power capacity of 21GW planned is equivalent to half of the country’s 2023 coal-fired generating capacity of 40.7GW.

Can Indonesia transition from coal to captive power?

Nearly 25% of operating coal capacity in Indonesia is for captive use, but the government’s efforts to transition away from coal are currently limited to the power sector. Captive power capacity has increased nearly eightfold from 2013 to 2023, from 1.4 GW to 10.8 GW operating.

How much coal capacity is proposed in Indonesia?

50% of proposed coal capacity additions (announced, pre-permit and shelved) as of July 2023 is for captive use. 14.4 GW of captive coal capacity is proposed or in construction. Indonesia is a leading supplier of the critical metals needed for a renewable energy transition, but many operating and planned smelters are operated using coal power.

Why did China stop building captive power plants in Indonesia?

In Indonesia, investors and developers from China recently built many captive power plants as part of the Belt and Road Initiative (BRI). China itself in September 2021 announced its commitment to stop building captive power plants outside China’s territory as a step to advance the Green Belt and Road Initiative.

How big is Indonesia's captive power capacity?

The report highlights that across Indonesia, the captive power capacity of 21GW planned is equivalent to half of the country’s 2023 coal-fired generating capacity of 40.7GW. The analysis reveals that 13GW of the current captive power projects comprised 32% of 2023’s coal-fired capacity.