In November 2022, Indonesia and ADB agreed to explore the decommissioning of the Cirebon-1 coal plant as a pilot project. The refinancing needed to shorten its operational life by 10-15 years is estimated to cost $250-350 million.
Initially, the Indonesian government planned to use $20 billion pledged in the international Just Energy Transition Partnership (JETP) to decommission the plants. However, JETP sponsors preferred to invest in new renewable energy projects. Indonesia aims to retire 6.7 GW of coal capacity by 2040, focusing on decommissioning old and new coal plants. The ultimate goal is to completely eliminate coal-fired power generation from the country's energy mix by 2058 as part of Indonesia's net zero target by 2060.
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