Why the Government Closes the Door on New Diesel Power Plants

By Editorial Team 27/11/2020
Summary

The government will not allow the construction of any new diesel power plant (PLTD), following the program to convert oil-based (BBM) to gas-fired and renewable (EBT) power plants."We no longer approve any new construction of the diesel power plant. Meanwhile, the old ones will be converted to gas-fired and renewable power plants. However, before the new one is ready, the old plants can still operate,” the Energy and Mineral Resources Minister, Arifin Tasrif, revealed on Thursday (11/26).

According to Arifin, the conversion from PLTD to gas-based and renewable power plants will make the electricity supply cost (BPP) cheaper since Indonesia still has to import some oil supplies. Besides, fuel oil prices are generally higher than gas. "The low electricity supply cost means that the electricity selling price will also be more competitive," he argued. Fewer diesel power plants s also mean less greenhouse gas emissions.

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