Indonesia has began to conduct carbon trading trials in the electricity sector, beginning from now and estimated to end by August 2021. This move is expected to help with the reduction of reducing greenhouse gas (GHG) emissions in the energy sector. Indonesia plans to reduce the emission by around 350 million tonnes by 2030.
This trial will be arranged to cover 80 power plants of which 54 are owned by PLN and the rest of the 26 power plants belong to the private sector. 19 of these power plants are able to generate more than 400 megawatts (MW), 51 power plants generates about 100 to 400 MW and the remaining 10 units are mine mouth plants.
A mine mouth electric plant is a coal burning electricity generating plant that is built close to a coal mine. In these plants, coal is excavated from the dig site, placed on a conveyor belt, and run directly into the plant where the coal will be burned.
This trial is being conducted as part of the assessment category of Subroto Award for Energy Efficiency (PSBE) 2021. The Subroto Award is supposed to the Indonesia’s highest award given to stakeholders who have extraordinary achievements in advancing the Energy and Mineral Resource sector.
Indonesia has begun giving awards to carbon emissions traffickers that are handling power plants. This is supposed to encourage their private sector to be committed to the the main goals of ensuring energy efficiency and GHG reduction.
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