Biomass Co-Firing for Electricity in Indonesia: A System Thinking Approach

Indonesia's heavy reliance on coal for electricity generation presents significant environmental challenges. To address these issues, the country has set ambitious renewable energy targets aimed at reducing greenhouse gas emissions and transitioning to sustainable energy sources. Biomass co-firing, which involves partially substituting coal with biomass in existing coal-fired power plants, has emerged as a promising strategy. This approach utilizes locally available biomass resources like agricultural residues and forestry waste, offering a way to reduce carbon emissions while maintaining energy security. However, large-scale implementation of biomass co-firing presents complex challenges. Factors such as fuel availability, supply chain logistics, economic viability, and regulatory frameworks influence its feasibility. Establishing a reliable biomass supply chain is crucial, as biomass sources vary in quality and energy content, affecting combustion efficiency. Additionally, concerns about the cost-effectiveness of biomass compared to coal raise questions about financial sustainability. To tackle these challenges, this study employs a system thinking approach to analyze the relationships involved in biomass co-firing in Indonesia. Through qualitative data analysis from interviews with stakeholders, a causal loop diagram was created to map interconnections among policymakers, energy producers, and biomass suppliers. The study identifies 44 factors influencing biomass co-firing, emphasizing the need for coordinated policies and investment in supply chains. Strengthening collaborations among government, private sectors, and local communities is essential for ensuring a stable biomass supply and supporting rural economic development, ultimately contributing to Indonesia's sustainable energy transition.