Indonesia's Utility Giant Aims for Green Future with SMR Plans in West Kalimantan
PT PLN (Perusahaan Listrik Negara) is Indonesia's state-owned electricity utility company which controls, owns, and operates approximately 69% generation capacity in Indonesia. PLN also holds a monopoly on the distribution of electricity in Indonesia and it is the second-largest state company by assets. In total, PLN controls over 64,553 MW of generation capacity by the end of 2021.
PT PLN is committed to meeting escalating energy demands while pursuing net-zero emissions by 2060. To achieve these strategic goals, PT PLN is transforming its operations by exploring nuclear energy and clean energy sources, forging international partnerships, and charting an emission reduction trajectory to cut 1,057 million tons of greenhouse gases by 2060.
PT PLN Commitment to Decarbonization
PT PLN in a press release on 31 October 2021 announced that it is in the process of making an energy transition, innovating to decarbonize to achieve carbon neutrality by 2060. This effort is illustrated by the roadmap for the Zero Carbon 2060 scenario. Currently, steam power plants still dominate the PLN generation system with a contribution of around 68%. PLN aims to start operating nuclear-based power plants in 2040 with a share of 4 percent. PT Pembangkit Listrik Negara (PLN) (Persero) will develop a nuclear power plant through its subsidiary PLN Indonesia Power (PLN IP) in cooperation with NuScale Power from the US and several other entities.
Assessing Feasibility of NuScale's SMR Technology in West Kalimantan
In a recent development, a collaboration between the National Research and Innovation Agency (BRIN), PLN IP, and NuScale Power Corporation, is underway to assess the feasibility of implementing NuScale's SMR technology in Bengkayang Regency, West Kalimantan. PLN IP, along with BRIN and NuScale, has established a Collaboration Agreement to conduct a Techno-Economic Assessment for the construction of a nuclear power plant in West Kalimantan to support the region's power system. This 8-month-long activity, starting in August 2023, aims to assess the technology's performance and economic feasibility for application in West Kalimantan. The collaboration aims to evaluate the feasibility of implementing NuScale's SMR technology in West Kalimantan for nuclear power generation, considering technical, economic, and regulatory aspects. The study will provide valuable insights for Indonesia's energy future and carbon emission reduction efforts.
NuScale's SMR technology, represented by its VOYGR-6 series, holds promise as a compact and modular solution for nuclear power generation. The design certification received from the U.S. Nuclear Regulatory Commission (US NRC) underscores its safety and technical viability. The VOYGR-6 series modules, each with a capacity of 77 MWe, exhibit features of modularity and scalability, allowing for incremental deployment and potentially lowering initial investment costs.
Potential Impacts
If successfully implemented, the adoption of SMR technology in West Kalimantan could offer the following benefits:
Diversification and Emission Reduction: Integration of SMR technology contributes to energy diversification and aids in emission reduction efforts, aligning with Indonesia's net-zero goals.
Energy Security: The nuclear power plant could provide a reliable and consistent energy supply, particularly beneficial for energy-intensive industries and ambitious industrial projects in the region.
Socio-Economic Growth: The development of nuclear power could foster socio-economic growth in West Kalimantan, serving as a catalyst for industrial development. It aligns with the concept of 'mining hilirization,' boosting downstream industries.
PT PLN's pursuit of an energy transition and decarbonization strategy, with a focus on nuclear and clean energy sources, showcases a commitment to addressing Indonesia's energy challenges while aiming for net-zero emissions by 2060. The collaboration with NuScale Power to assess the feasibility of SMR technology in West Kalimantan is a significant step toward achieving these goals. However, the successful adoption of nuclear energy also requires careful evaluation of technical, economic, regulatory, and safety aspects to ensure a sustainable and responsible energy future for Indonesia.
