Perusahaan Listrik Negara (PLN)

PLN has set a target to reduce its scope 1 and 2 emissions intensity by 14% by 2028, compared to 2019, along with the aspiration to reduce its scope 1 and 2 emissions intensity by 100% by 2060, compared to 2019. While this target represents a significant increase in ambition relative to PLN’s lack of targets in 2019, it is still not ambitious enough to meet the rate of reduction required by the company’s 1.5°C pathway and align with the Paris Agreement goals. PLN could enhance this by setting intermediary targets to support its 2060 net-zero aspiration.

PLN increased its scope 1 and 2 emissions intensity from 821 gCO2e/kWh in 2015 to 844 gCO2e/kWh in 2020, equating to a historic annual change of 1%. However, 2% annual reduction between 2015 and 2020 is required by the company’s 1.5°C pathway. Based on projected generation trends and the rate that fossil-fuel assets are decommissioned, this indicates that PLN will strongly exceed its carbon budget by 2035. PLN’s emissions intensity is projected to stay stagnant between 2021 and 2025. This is not aligned with the company’s 1.5°C pathway, which requires a 3% annual reduction going forward.

The company does not disclose financial information on climate or non-climate related research and development (R&D) spending in the reporting year. PLN publishes its total CapEx investment for 2020 and for the next five years, along with its total fossil-fuel and low-carbon portfolio development CapEx for 2020 and the next five years. Despite, this PLN does not publish its planned low-carbon electricity portfolio development CapEx for the next five years. PLN states that it is prioritizing new and renewable energy development to align with the Indonesian Government’s policy, but is planning to develop coal-fired power plants which will further impact its locked-in emissions. PLN is projected to strongly exceed its budget by 2035.

PLN aspires to achieve net-zero emissions by 2060, supported by a target to reduce its scope 1 and 2 emissions intensity by 14% by 2028, compared to 2019. PLN is planning to increase renewables in its energy mix to 23% by 2028, and phase out coal by 2056.

PLN’s transition plan aims to reduce its emissions by prioritizing the development of new and renewable energy, in part through participation with the private sector and investors, fuel switching (e.g. the use of biofuel mixtures in diesel-powered plants) and the utilisation of exhaust gases, along with the use of low-carbon and efficient technologies – such as the use of supercritical and ultra-supercritical boiler technology.

PLN is still focused on the use of coal. Conducting co-firing trials, with seven coal-fired power plants reaching commercialisation, aiming to increase this to 52 by 2025. PLN plans to use supercritical and ultra-supercritical boilers in coal-fired power plants to be developed in Java and Sumatra.

Between 2015 and 2020, PLN’s emissions intensity decreased by about 2% due to an increase in gas-fired power generation capacity, which compensates for its rise in coal-fired power generation capacity, and the stagnation in renewables and low-carbon power generation capacity.

Despite PLN’s new and renewable expansion plans for 2030, with its continued use of coal until 2056, and fuel switching objectives the company is likely to exceed its carbon budget by 62%. With reliance on fossil-fuels and a coal phase out date PLN requires the use of CO2 abatement technologies, such as carbon capture and storage.