Background
Part of IESR’s policy advocacy focuses on enabling a just energy transition of Indonesia’s energy system from a fossil-based system to one with renewables and low-carbon technologies, including pushing for the early retirement of coal power plants and the rapid deployment of renewable energy as their substitute. The Indonesian stakeholders have made substantial progress and commitment toward this goal, especially regarding the on-grid power plant. In stark contrast, many industries in Indonesia still intensively use and continue building their off-grid power plants, aka captive. In 2023, 13-14 GW or 60% of the current total captive power plant capacity was coal-fired power plants (CFPP). This value is expected to continue to grow until 2030, with an additional captive CFPP capacity of around 20 GW. In addition, there’s also a substantial amount of LNG and natural gas power plants both in use and the pipeline. This highlights the urgency in decarbonizing the industry sector, including its fossil-fueled captive power plant, to achieve a just energy transition in Indonesia.
An important step in substituting the aforementioned fossil-fueled captive power plant is deciding on which, when, and how said plants will be retired and what renewable energy sources are feasible as a substitute, both from the technical, economic, and legal point of view. These decisions should be based on the facts, data, and rigorous analysis at the asset level to determine the most beneficial pathway, including its cost and benefit, for each operator of the asset as part of decarbonizing their industry.
IESR is currently working on an asset-level database and sectoral analysis of captive CFPP, subsequent possible renewable substitutes, and a general decarbonization pathway with supporting study cases. As a means to disseminate said information, IESR plans to incorporate said data and findings into the coalradar.id / radarbatubara.id platform as an additional section focuses on captive CFPP.
About IESR
The Institute for Essential Services Reform (IESR) is a think tank in energy and environment. It encourages transformation into a low-carbon energy system by advocating public policy based on data-driven and scientific studies, conducting capacity development assistance, and establishing strategic partnerships with non-governmental actors.
About Coalradar.id
An online data visualization platform related to coal dynamics in Indonesia covering national and sub-national level data and projections on coal upstream and downstream industry, its impact on the economy, health, and environment. Aimed at helping policymakers, industries, academics, CSOs, and communities to gain insights to help them prepare for the energy transition away from coal.
The potential service provider has to submit a proposal package, which consists of a technical proposal (background, task to be conducted, methodology, schedule), a cost proposal (proposed manpower total rate and other costs), and relevant resume(s) & portfolio, if any. All bidders are also required to submit administrative bidding documents, which can be downloaded through this link s.id/documentsrfpcommsiesr
Proposals will be accepted until 23:59 PM. Indonesian Western Standard Time (WIB, GMT+07) on Wednesday, 28 May 2025. Any submissions received after this date and time will be regarded as inadmissible.
Kindly address the Program Manager Energy System Transformation IESR, Deon Arinaldo, at deon@iesr.or.id, the Clean Energy Hub Coordinator, Irwan Sarifudin, at irwan@iesr.or.id and CC Website & Digital Asset Officer Alif Fitrah at alif@iesr.or.id and Energy System Transformation program officer Reananda Hidayat at reananda@iesr.or.id for inquiries and submissions. Please put “RFP Response – Web Captive” in the subject line.