Case Study: What is the true cost of coal in Central Java?

PLN expects to expand coal power capacity in Central Java, which is in the centre of Indonesia's economic corridor. But are PLN plans realistic and what will this cost—not just the cost to rate-payers, but also in terms of impacts on climate change and air pollution? Are there alternatives to these developments? 

By Lourdes Sanchez , Lucky Lontoh, Lasse Toft Christensen on October 22, 2017

This case study evaluates the cost of the expansion plans of coal power in the Indonesian region of Central Java and compares it with the cost of developing part of the additional capacity with renewable energy sources.

Using Rencana Usaha Penyediaan Tenaga Listrik (RUPTL), the procurement business plan of Perusahaan Listrik Negara (PLN, the state-owned electricity generation company), it builds on GSI's previous research estimating the cost of coal power in Indonesia, considering the cost of subsidies and externalities. The paper concludes that, even with the current feed-in tariff system for renewable technologies in Indonesia, renewable power capacity is cheaper than coal.

Report details

Focus area
IISD, 2017