Techno-economic Analysis of Biomass Co-firing Application on Indonesia 660 MW Class Subcritical Coal-Fired Power Plant

Following the publication of the Ministerial of Energy and Mineral Resources of Indonesia Decree number 14.K/TL.04/MEM.L/2023 regarding the greenhouse gas (GHG) emission cap for coal-fired power plant (CFPP), PLN, the electricity company owned by Indonesia, is attempting the GHG reduction of its CFPPs at certain levels through several decarbonization programs, with biomass co-firing on its existing CFPP as the first step. The CFPP that becomes the object of this study is 660 MW class subcritical, Suralaya units 5-7, with a net capacity of 643.09 MW per unit. The biomass used is sawdust that was taken from local suppliers. The existing power plant has a carbon emission intensity of 1.03 Ton/MWh, higher than that of the carbon cap (0.911 Ton/MWh). Therefore, it should pay a carbon tax at a certain value. The biomass co-firing implementation can reduce its intensity depending on the ratio. The biomass implementation would probably require an upgrade investment. The other cost-effect factors are fuel cost and carbon tax. The degradation of CFPP performance can impact on fuel costs. Then, the biomass co-firing implementation can reduce or even prevent a power plant from paying the carbon tax. The best option regarding the financial calculation result is a 5% ratio. It potentially reduces the levelized cost of electricity (LCOE) by 0.36 IDR/kWh. However, a higher biomass ratio will probably increase the power plant LCOE. Implementing a higher biomass co-firing ratio does not always result in better financial aspects. The decision to implement shall consider the valid regulation comprehensively.