Coal seen as viable source of energy

JAKARTA (JP): Director General of Electricity and Energy Development Zuhal suggested on Saturday that the target of energy diversification in Indonesia will be best served by maximizing the use of coal, without an excessive impact on the environment.

One of the target of energy diversification is to reduce the use of oil, which still serves as one of the most important sources of foreign exchange earning, Zuhal said at a ceremony inducting him as the fourth professor to the Faculty of Engineering at the University of Indonesia.

Before a senate of professors at the university, Zuhal delivered a speech on multi-objective decision making for the development of electrical energy within the policy of energy diversification.

Zuhal noted that the role of coal as the substitute for oil will depend heavily on the developments of oil prices on the world market. Whenever oil prices are high, coal will be an important substitute, but when the prices are low, energy diversification into coal may lose its momentum.

The government has launched an energy diversification policy, trying to shift the dependency from oil as the only energy resources (mono-energy), to the use of various energy resources (multi-energy), Zuhal said.

Therefore, he said, a greater use of coal will save a greater amount of oil, which remains the largest energy source in Indonesia.

Oil resources contributed the largest portion, 58 percent, to Indonesia's energy consumption last year, while coal contributed only 8.8 percent. The second largest contributor of energy was natural gas with 25 percent, while hydro-energy accorded 6.7 percent and geothermal steam 1.3 percent.

"Looking at the fact that we have a great deal of coal reserves, coal must be seriously considered as one of the primary energy resources," Zuhal said.

According to 1993 data from the state oil firm Pertamina, Indonesia holds 36 billion tons of coal reserves, which can be mined for a century, as compared to discovered oil reserves of 10.92 billion barrels, which will be finish within the next 20 years.

Zuhal said electricity power plants -- because of their ability to use different energy sources -- play an important role in the energy diversification program, especially in promoting the use of coal.

"However, planners will meet new difficulties in making decisions, on whether or not to use coal for power generation, because of its inter-connection nature with other energy resources," Zuhal said.

Zuhal, who developed the Zuhal Optimum Plan, presented alternatives of energy diversification for Java, where the highest energy consumption exists, at the end of the eighth Five- Year Development Plan (Repelita VIII), in 2009.

Regardless of the environmental impact, Zuhal said, coal-fired power plants could supply up to 71 percent of all domestic electricity needs. With minimum environmental impact, coal-fired energy could still satisfy up to 57 percent of all electricity needs.

With this scenario, Zuhal said, gas-fired power stations will contribute electrical energy at the range of 17.1 percent to 21.1 percent, while geothermal and hydro-powered electricity plants will contribute about 10 percent.

However, when the use of coal is lowered -- because people do not like its impact on the environment for example -- then it will open the possibility of using other energy resources, including nuclear.

With minimum environmental impact, Zuhal said, nuclear power plants in Java should have a capacity of up to 1,200 megawatts only.

Among the top officials present during Saturday's ceremony were Minister of Education and Culture Wardiman Djojonegoro, Minister of Mines and Energy Ida Bagus Sudjana, Coordinating Minister of People's Welfare Azwar Anas, State Minister of National Development Planning Ginandjar Kartasasmita, Minister of Health Sujudi, Minister of Trade Satrio B. Joedono and senior economist Sumitro Djojohadikusumo. (rid)