Indonesia seeks to gradually reduce total emissions through various efforts, one of which is carbon trading. Through this scheme, the value of carbon trading transactions in the first phase of the steam power plant (PLTU) sub-sector in 2023 is expected to exceed US$ 9 million or the equivalent of Rp. 136.8 billion.
The estimated transaction value comes from the allocation of carbon which has the potential to be traded directly between power plant companies of 500,000 tons of CO2e this year.
The potential for the remaining carbon quota to be traded is obtained from the recapitulation of emissions over the past year of 20 million tonnes of CO2e.
At that time, the PLTU that produced emissions under the technical approval for the limit on greenhouse gas emissions by business actors (PTBAE-PU) reached the level of 9.7 million tonnes of CO2e. The emission realization under PTBAE-PU was then identified as a surplus emission.
On the other hand, the PLTU which produces emissions above PTBAE-PU reaches the level of 10.2 million tonnes of CO2e. The emission realization that exceeded PTBA-PU was later categorized as an emission deficit.
The potential carbon quota that can be traded directly is calculated from the emission deficit minus the emission surplus over the previous year. Thus, the results of the reduction in the carbon balance allocate a quota for trading this year of 500,000 tons.
Furthermore, the Ministry of Energy and Mineral Resources projects that the price of carbon credits from each emission is valued at a range of US$2 per tonne of CO2e to US$18 per tonne of CO2e.
“ESDM does not issue a price, but that is just a study from us than US$2 per tonne to US$18 per tonne is based on the specifications of each power plant,” said the Technical and Environmental Director of Electricity, Priharto Dwinugroho, when met at the Ministry of Energy and Mineral Resources. , Jakarta, Wednesday (22/2/2023).
Priharto said that this price range would relatively be able to maintain the economics of the generator amid the government’s efforts to implement carbon trading this year.
This year’s carbon trading initiative will target 99 coal-fired power plants (PLTU) from 42 companies with a total installed capacity of 33,569 megawatts (MW).
Meanwhile, this year’s mandatory carbon trading is carried out for PLTU connected to the electricity network of PT Perusahaan Listrik Negara (Persero) or PLN with a capacity greater than or equal to 100 MW.