Role of the energy-carbon-economy nexus and CO 2 abatement cost in supporting energy policy analysis: A multi-scenario analysis of the Java-Bali system
Penulis/Author
Prof. Ir. Sarjiya, S.T., MT., Ph.D., IPU. (1); Ir. Lesnanto Multa Putranto, S.T., M.Eng, Ph.D., IPM., SMIEEE. (2); Rizki Firmansyah Setya Budi (3); DWI NOVITASARI (4); Prof. Dr. Eng. Ir. Deendarlianto, S.T., M.Eng. (5); Prof. Ir. Tumiran, M.Eng., Ph.D. (6)
Tanggal/Date
2023
Kata Kunci/Keyword
Abstrak/Abstract
Java-Bali is Indonesia’s largest power system, with enormous CO
Indonesia has committed to reducing CO
2
2
emissions. Therefore, the Government of
emissions by introducing two policies: (1) a new and renewable energy
target and (2) coal phase-out planning. However, no study on the energy-carbon-economic nexus in Indonesia
has analyzed the impact of reducing CO
2
emissions using these policies. Therefore, this research analyzes the
economic impacts on the energy and carbon nexus in the Java-Bali system to obtain and review feasible strategies
to support these policies. OSeMOSYS was used in this study to implement multiple scenarios of emission
reduction. The results indicate that policies that clearly regulate carbon limits and taxes for power generation
companies are required. A carbon limitation of 10,087 million tons with a carbon tax of 67 USD/ton and a carbon
limitation of 8482 million tons with a carbon tax of 77 USD/ton are required to supporting the new and
renewable energy target and coal phase-out plan. Nuclear energy and liquefied natural gas are crucial for sup
porting the new and renewable energy targets and coal phase-out policies. Therefore, the government must
immediately decide to utilize nuclear energy and guarantee an adequate liquefied natural gas supply at an
affordable price. Furthermore, it is crucial to seek alternatives to meet the demand projection through inter
connection with other islands that have immense renewable energy sources to meet the new and renewable
energy target and successfully implement the coal phase-out plan.
