Coal seen as viable source of energy

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)