Indonesia: PLN to go nuclear if renewable energy goal flops

Indonesia: PLN to go nuclear if renewable energy goal flops

State electricity company PT PLN has revived Indonesia's long held ambition
to operate nuclear power plants after it officially floated the idea for the
first time in its new business plan, which will guide the company's
operation until 2026.

PLN's so-called business electricity procurement plan (RUPTL), officially
endorsed by the Energy and Mineral Resources Ministry last month, also
opened up the possibility of installing nuclear plants in remote regions, as
an alternative to highcost renewable energy sources.

While the RUPTL maintains that nuclear energy remains a last resort for
electricity procurement, it notes that the energy source must be considered
if renewable sources from water, wind, geothermal, solar and biomass fail to
meet the desired target.

In its plan, PLN conveyed a firm commitment to ensuring at least 23 percent
of the country's power plants are fueled by renewable energy by 2025, up
from the current figure of 13 percent.

"Nuclear energy, as a low-carbon energy source, can be used as an
alternative to meet the clean energy target," the plan states.

A source at PLN said recently that the plan to go nuclear is in progress, as
indicated by the allocation of state budget funds to conduct a comprehensive
study on the matter this year.

Government officials have previously stated that nuclear power was not on
the table for the current administration, as long as the supply of coal and
gas remained abundant.

However, the inclusion of nuclear in PLN's business plan indicates a
reversal of this policy.

As Indonesia is an archipelagic country, PLN also makes specific note of the
possible use of small modular reactors, which can produce up to 300
megawatts of electricity (MWe), for certain islands, but also notes further
studies are needed as small modular reactors are not yet commercially
available.

PLN also shared its concerns that the capital, radioactive waste management
and nuclear liability costs of nuclear power plants remain unclear as they
differ from study to study.

Although a 2006 joint study showed that investment in nuclear power plants
would only cost US$1,700 to $2,300 per kilowatt (kW), a later study showed
costs could run as high as $6,000 per kW.

In comparison, a recent 1,000 MW coal-fired power plant, constructed by a
Chinese consortium in Indonesia, only costs $1,000 per kW.

Safety concerns have dominated the majority of discussions on nuclear power
development as Indonesia lies within the volatile Pacific Ring of Fire.

The country has delayed nuclear development for years, citing it as a "last
resort", with the government shelving its plan to build its first nuclear
power plant following the Fukushima nuclear disaster in Japan in 2011.

But despite its controversial nature, nuclear power is categorized as a
source of clean energy.

Although Indonesia has ratified the Paris Agreement on climate change, which
aims to formalize the country's commitment to reducing its emissions of
carbon dioxide and other greenhouse gases, more than half the country's
electricity is still procured from coal.

The House of Representatives seems to be on board in support of PLN plans to
go nuclear.

Satya W. Yudha, deputy chairman of Commission VII overseeing energy, said
the government should make nuclear energy a viable option, instead of a last
resort.

"We can no longer turn a blind eye toward our neighboring countries, such as
Singapore, Vietnam and Thailand, who have jumped on the nuclear bandwagon in
their energy plans," he said.

"In the future we need to conduct more studies on nuclear waste management
in the region," the Golkar Party legislator told recently.

Fellow Commission VII legislator The Jakarta Post Kurtubi, a long proponent
of nuclear energy, said the energy source "could kill several birds with one
stone," including the assurance of a large scale power supply and providing
energy without carbon emissions.

He noted that there were several locations in Java and Kalimantan that could
potentially be suitable locations for nuclear power development.

Experts, on the other hand, were divided on whether developing nuclear
energy in Indonesia was a good idea.

Wood Mackenzie senior research analyst Edi Saputra said Indonesia's
geographic conditions, which are prone to earthquakes and other seismic
activities, made it unsuitable for nuclear development.

"From a cost perspective, electricity from gas and liquefied natural gas is
more economical than nuclear," he said.

Iwa Garniwa from the University of Indonesia (UI) said that if PLN was
serious about building nuclear power plants, it needed to state a clear
timeline for conducting feasibility studies and beginning construction.

"If the language was more assertive, then stakeholders could take concrete
steps, such as developing studies at higher education institutions and
preparing the necessary infrastructure," he said.

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Link to Original Article:
http://www.thejakartapost.com/news/2017/04/25/pln-to-go-nuclear-if-renewable
-energy-goal-flops.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com