Government Encourages Biomass Co-Firing at IPP's Power Plants

By Editorial Team 26/02/2021
Summary

The Ministry of Energy and Mineral Resources (ESDM) encourages independent power producers (IPP) to substitute coal with biomass co-firing in power plants. ESDM Ministry's Director General of New and Renewable Energy and Energy Conservation, Dadan Kusdiana, said it is currently drafting ESDM Ministerial Regulation to oversee biomass co-firing, expecting to stimulate IPP's involvement in the biomass co-firing program for coal-fired power plants.

In more detail, the Ministerial Regulation contains engineering aspects, mainly on specifications and prices for biomass. There are also incentives to encourage a co-firing program for power generation. For example, the government would build a biomass production facility from municipal waste. "The ESDM Ministry is finalizing its regulations for biomass co-firing, including for non-PLN power plants," said Dadan on Wednesday (2/24).

Dadan expects the regulation to improve the economic-effectiveness of the power plant's co-firing and biomass procurement. "For biomass, we are expecting woodchips productions, not only pellets. Thus, the economy will improve," he said while refusing to confirm the regulation issuance timeline.

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