Assessment of conversion of power plant from coal to biomass

In this project, Ea Energy Analyses has aided DSIF (Danida Sustainable Infrastructure Finance) in assessing the conversion of an Indonesian power plant from running on coal to running on biomass.

As part of the Paris Climate Agreement, Indonesia has a goal to increase the share of renewables to 23 % of the national energy mix by 2025, up from presently around 14 %.

In relation to this, Indonesian power company PP Energi asked DSIF for financing for the conversion of a coal-fired power plant in Lampung Province in Southern Sumatra to biomass, as the plant was no longer economically viable when running on coal. This could also contribute to increasing the share of renewable energy and reduce CO₂-emissions in Indonesia.

The overall objective of the project was to: 

• Contribute to the GoI objective of reducing CO₂ emissions and fulfil the commitments made as part of the Paris Agreement. 
• Make the existing plant economically viable by changing to an alternative, more affordable fuel. 
• Create a local market for biomass, contributing to job creation. It may also improve the economy of the nearby plantations if biomass waste from these is used as fuel. 

Ea contributed to developing a concept note for DSIF as a basis for a decision to go ahead with the next step of the project as well as development of terms of reference for at detailed feasibility study for the project.

The project ran from November 2019 to February 2020.