Indonesia's Climate Change Mitigation for Achieving NZE by 2060: Power Plant Carbon Capture vs. Renewable Energy Development

The urgency of climate change mitigation and achieving net-zero emissions has become a critical global priority. In response, the Indonesian government has committed to phasing out coal-fired power plants (CFPPs) by 2050 as part of its broader strategy to reduce greenhouse gas emissions, with the ultimate goal of reaching net-zero emissions (NZE) by 2060. This study compares two approaches to achieving this target: implementing Carbon Capture and Storage (CCS) technology at existing coal plants and building renewables to replace these facilities. The projected cost of implementing CCS across 37,282 MW of coal plant capacity is 3,515 trillion IDR over 25 years, significantly higher than the 1,581 trillion IDR needed to build equivalent renewable capacity. Despite the higher cost, the first approach ensures a reliable electricity supply by maintaining coal plants as stable energy sources while reducing annual CO2 emissions by approximately 213 million tons, a 29.3% decrease in Indonesia's total emissions. The second approach-transitioning to renewables-is more cost-effective and crucial for mitigating climate impacts, but it faces challenges. These include low capacity factors, intermittency, and long construction timelines for projects like geothermal and hydro power. The study concludes that while transitioning to renewables is financially advantageous, integrating CCS provides significant environmental benefits and maintains energy reliability, both essential for meeting Indonesia's climate goals.