After successfully collaborating with the East Java Provincial Government, Perusahaan Listrik Negara (PLN) has partnered with the Jakarta Capital City Government to work together in waste management by converting it into Refuse Derived Fuel (RDF) for Steam Power Plants (PLTU).
Refuse Derived Fuel treats waste through shredding, turning it into RDF, which is used as a substitute (co-firing) for part of the coal in PLTU and a renewable energy source.
For Dr. Fahmy Radhi, an energy economics observer from Universitas Gadjah Mada, this collaboration benefits both parties.
For the Jakarta Capital City Government, this collaboration will help address the waste issue in Jakarta, which produces over 7,500 tons of waste per day. On the other hand, this will ensure a supply of 1,000 tons of RDF for PLN from processing 3,000 tons of waste per day into biomass for co-firing in PLTU.
“However, it will not run smoothly if tipping fees and electricity selling prices have not been agreed upon,” he said at the UGM Campus on Monday (12/6).
Dr. Radhi explained that tipping fees are the costs paid for waste sorting before it is processed into RDF, based on the amount of waste used. Meanwhile, the electricity selling price is the price at which electricity is sold to PLN based on Presidential Regulation 35/2018.
The tipping fee is set at a maximum of Rp500,000 per ton of waste, and the electricity selling price is set at US$13.35 per kWh. Considering the tipping fee calculation, the electricity selling price of US$13.35 per kWh is still below the economic price.
“If PLN has to increase the electricity selling price according to the economic price, it will burden PLN, and ultimately it will be passed on to electricity consumers,” he explained.
Therefore, as a solution, he stated that the Jakarta Capital City Government should be willing to pay the tipping fee from the current year’s regional budget (APBD). According to him, it is only logical for the tipping fee to be paid by the Jakarta Capital City Government since waste management is the responsibility of the local government, not the obligation of PLN to create a cleaner and healthier environment in Jakarta.
PLN must also purchase the electricity generated at a price determined in PR 35/2018. The success of this collaboration between the Jakarta Capital City Government and PLN can undoubtedly be implemented in various regions in Indonesia.
“Of course, this is not only for waste treatment but also to generate environmentally friendly renewable electricity,” he added.
Author: Agung Nugroho