Advancing Biomass Usage for Power Plant and Carbon Trading Opportunity in Indonesia

As Indonesia strengthens its commitment to decarbonisation, biomass is gaining traction as an energy source with significant potential. The country’s power sector is working to maximise its use in ways that align with emissions reduction targets at both national and global levels. Supporting this effort, Tri Hita Consulting has been assisting PT Biomassa Energi Lestari (PT BEL) in enhancing regulatory preparedness for carbon trading and greenhouse gas accounting in biomass and coal co-firing power plants.

The initiative began with a technical site visit to several power facilities in Bangka, Java, and Kalimantan that operated by PT PLN Nusantara Power Services and Independent Power Producers (IPP) which consist of coal co-firing and biomass power plants. 

Following the site visit, Tri Hita Consulting, represented by Verena Streitferdt, Kurniawan, and Marcella Winata, also participated in a focused group discussion hosted at the PLN Energi Primer Indonesia (PLN EPI) Office. The discussion involved Agence Française de Développement (AFD), PLN, PT BEL, and other partners. It focused on the current state of coal co-firing and biomass power plants in Indonesia, including the current progress, opportunities for carbon trading, and key barriers to scale up.

Among the most pressing challenges are logistics and resource availability. With islands spread across wide areas, transporting biomass is costly and difficult. Power plants need to be located near coastal zones or placed in the middle of the source of biomass to reduce distribution burdens. To scale up, it is important to map available biomass sources and ensure steady supply at reasonable cost. Identifying regions with strong commercial potential helps guide investment. At the same time, recognising risks such as supply gaps or weak infrastructure is key to building a stable and scalable biomass sector.

Addressing these barriers will require more than technical fixes. It calls for strong collaboration, data-driven planning, and sustained investment across the energy value chain. With the right support, biomass can play a meaningful role in reducing emissions while strengthening energy access in remote regions. 

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