(Bloomberg) — Indonesia may only need $37 billion to shut down its coal-fired power plants, even if the bill doesn’t include building renewable energy to take their place.
That $37 billion worth of financing would be enough to buy out future revenues of 118 existing coal plants and up to 10 years of contracted coal power generation, meaning Southeast Asia’s largest economy could wean off the fuel by 2040, climate analytics company TransitionZero said in a report. That’s a decade earlier than the official target.
The sum excludes the cost of replacing those plants with renewable energy as Indonesia’s power overcapacity means there would be no immediate need, said TransitionZero analyst Jacqueline Tao.
Indonesia’s key challenge is in reducing emissions without disrupting economic growth that’s lifting millions of its people out of poverty. The government found muted interest from investors for its $600 billion plan to not only retire coal plants, but also develop renewable energy and expand its power network to meet Indonesia’s growing demand for electricity over the next two decades.
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