Work

Unlocking bioenergy for electricity generation in Indonesia: A Resource-economic assessment

Year: 2025

Type: article

Abstract: · Three bioenergy power plants were assessed using a consistent evaluation framework. · Capacity and tipping fee plays major role in the viability of MSW power plant. · Biomass and biogas power plants are sensitive to selling price and capacity. · Biomass is ideal for abundant, steady supply and low electrification ratio areas. · Biogas works in low-electrification, limited and stable supply areas. The growing demand for electrical energy in Indonesia coincides with an urgent transition from fossil fuel–based generation to renewable energy sources. Leveraging its abundant natural resources, the country holds considerable potential for bioenergy power development. However, diverse bioenergy types are deployed across multiple islands, posing logistical and policy challenges. This study evaluates the economic feasibility, environmental benefits, and policy implications of biogas, biomass, and municipal solid waste (MSW) power plants, with a focus on resource availability across different regions. Results indicate that biogas and biomass systems are particularly suitable for low-electrification areas with stable feedstock supply, delivering levelized costs of electricity (LCOE) of 0.045 USD/kWh and 0.061 USD/kWh, respectively, comparable to fossil-based generation. In contrast, MSW power plants, with an LCOE of 0.113 USD/kWh, require cost-efficient technologies and are best deployed in urban centers, where tipping fees play a pivotal role in competitiveness. All three technologies demonstrate substantial potential to reduce emissions relative to coal-fired plants. Nonetheless, fragmented policies, uneven feedstock distribution, and inadequate infrastructure continue to impede the translation of theoretical resource potential into viable project deployment.

Source: Sustainable Futures

DOI: 10.1016/j.sftr.2025.101456