Rehabilitation at 2×400MW Indonesia coal-fired power plant: Emission reduction and cost-effectiveness

Electricity system in Indonesia is still dominated by coal and this trend will remain to meet its electricity demand in the future. However, many of the power plants have been operating more than fifteen years. As means to cope with instability of power supply and reduce environmental issues, the Government of Indonesia is considering the upgrading and modernization of the existing coal power plants. Not only increasing the efficiency, rehabilitation also gives impact on GHGs emission reduction, like CO
₂
. This study compared 2 methodologies: IPCC 2006 and UNFCCC AM0061 to calculate GHG CO
₂
emission reduction by rehabilitation of a coal power plant with capacity 2×400MW in Indonesia. Furthermore, a cost-effectiveness analysis was performed which resulted implementing rehabilitation of coal-fired power plant in Indonesia costs $ 700-900/tœ
₂
annually with IRR 28-29% using foreign loans.