Early CFPP Retirement and Managed Phase-Out: What are the CIPP policy recommendations to enable the early retirement of Coal Fired Power Plants (CFPPs) and Managed Phase-Out of CFPPs (the reduction of generation output by operating CFPPs more flexibly)?
Below is a list of policy reform recommendations identified in the CIPP to enable the early retirement and managed phase-out of CFPPs:
- Issuance of implementing regulation for early retirement of CFPPs: The Coal Retirement Roadmap required by Perpres 112/2022 to be issued by Ministry of Energy and Mineral Resources would need to address issues relevant to early retirement or flexible CFPP operation, amongst others: potential impairment or asset disposal that could trigger state loss concerns. A separate regulation should be issued by the Ministry of State Owned Enterprises to provide that early retirement is in public interest and provide procedures to do so;
- Implement existing grid code on flexible use of certain CFPPs: Start to use PLN-owned plants more flexibly, following necessary technical upgrades and develop compensation mechanisms for non-energy outputs such as flexibility and ancillary services to shift CFPPs into a more supportive role, including IPPs;
A more comprehensive elaboration of policy reform recommendations to enable the early retirement and managed phase-out of CFPPs can be found in Chapter 8, specifically under the Subchapter 8.5 on Early CFPP Retirement and Managed Phased-Out.