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Difficulty in obtaining funding for retired coal power plants in Indonesia
Release time:2023-10-04 Source: Qingqiao Number of views:

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according toReutersAccording to social media reports, recentlyComplaint from Indonesian officials, developed countriesNoPrepare forUnder the "Justice Energy Transformation Partnership" funding program,Provide funding for early retirement of Indonesian coal-fired power plants. The early phasing out of coal-fired power plants involves many costs, including compensation for employees and businesses, as well as subsequent demolition of power plants and redevelopment of landCost of.

according totwo thousand and twenty-twoyearIn November, the United States and Japan led Alliance of Nations International Partnership Group signed the "Just Energy Transition Partnership" (JETP) agreement with Indonesia,developed countriesCommitment to support Indonesia at least$20 billion,about27 billion Singapore dollars to help Indonesia reduce its dependence on fossil fuels, but this investment plan has been postponed.

Indonesia's commitment to the power generation industryBy 2030, it will reach its peak emissions, which will not exceed 290 million tons of carbon dioxide, 25% lower than the previously expected peak in 2037. It will also reduce greenhouse gas emissions by 300 million tons by 2030 and over 2 billion tons by 2060.

Indonesian Finance Minister Muyanni previously disclosed that negotiations with international partners have become complex due to rising borrowing costs.JETP's financing plan combines equity investments, grants, and concessional loans,Among them, preferential loansaboutMake up the largest portion. canpartBanks are unwilling to provideofThe early retirement of coal power plants and the provision of loans are concerned that this will be seen as financing for coal projects.

The Deputy Minister of Ocean Affairs and Investment Coordination in Indonesia, Septian, who is responsible for coordinating investment and mining affairs, said that the challenge Indonesia faces is an oversupply of electricity, so the priority should be to withdraw coal from the market or increase electricity demandIndonesiaContinue to increase renewable energy sources,It is bound to affectbudgetCausing a certain impact.

Septian pointed out that in order for Indonesia to gradually phase out coal, developed countries need to provide funding on favorable terms. Indonesia's requirements are very clear, including the early retirement of coal-fired power plants and the construction of smart grids. However, developed countriesbeMore interested in commercial projects related to renewable energy.


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