Government Set to Regulate Carbon Economic Value of Power Plants

  • As an attempt to fulfill the government’s commitment in controlling the greenhouse gas ("GHG") emissions within the energy sector, as agreed within the Paris Agreement, the Ministry of Energy and Mineral Resources ("Ministry") is currently drafting a regulation on the implementation of carbon economic value of power plants.
  • In relation to said matters, the Director of Technical and Environmental Affairs, Mohamad Priharto Dwinugroho, has stated that every business actor within the power plants industry will be required to report their GHG emissions to the Directorate-General of Electricity through the APPLE-Gatrik app.
  • Furthermore, Mr. Nugroho has explained that the trade of carbon within power plants will urge steam power plants (pembangkit listrik tenaga uap – "PLTU") business actors to carry out the efforts in reducing GHG emissions (e.g. installment of rooftop solar-power generation systems, co-firing, energy efficiency).
  • Indeed, power-plant units with GHG emissions deficits will be required to purchase GHG emissions from power plants with GHG emission-surplus or those having the required amount of emissions for offset purposes and carbon tax will imposed if the power plants do not carry out GHG emission trading or continue to have GHG emissions.
  • Additionally, carbon trade also bring opportunities of incentives for PLTU units that produce GHG emissions below the determined GHG emissions technical agreement and for business actors of power plants utilizing renewable energy which have acquired of Emission Reduction Certificate (Sertifikat Pengurangan Emisi/SPE).
  • Ultimately, power plants with inefficient and high GHG emissions shall be considered for an early retirement program to be replaced with sustainable energy plants. (ANT)
......

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  • As an attempt to fulfill the government’s commitment in controlling the greenhouse gas ("GHG") emissions within the energy sector, as agreed within the Paris Agreement, the Ministry of Energy and Mineral Resources ("Ministry") is currently drafting a regulation on the implementation of carbon economic value of power plants.
  • In relation to said matters, the Director of Technical and Environmental Affairs, Mohamad Priharto Dwinugroho, has stated that every business actor within the power plants industry will be required to report their GHG emissions to the Directorate-General of Electricity through the APPLE-Gatrik app.
  • Furthermore, Mr. Nugroho has explained that the trade of carbon within power plants will urge steam power plants (pembangkit listrik tenaga uap – "PLTU") business actors to carry out the efforts in reducing GHG emissions (e.g. installment of rooftop solar-power generation systems, co-firing, energy efficiency).
  • Indeed, power-plant units with GHG emissions deficits will be required to purchase GHG emissions from power plants with GHG emission-surplus or those having the required amount of emissions for offset purposes and carbon tax will imposed if the power plants do not carry out GHG emission trading or continue to have GHG emissions.
  • Additionally, carbon trade also bring opportunities of incentives for PLTU units that produce GHG emissions below the determined GHG emissions technical agreement and for business actors of power plants utilizing renewable energy which have acquired of Emission Reduction Certificate (Sertifikat Pengurangan Emisi/SPE).
  • Ultimately, power plants with inefficient and high GHG emissions shall be considered for an early retirement program to be replaced with sustainable energy plants. (ANT)
......

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