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Carbon Capture in Indonesia’s Energy Sector: A Least-Cost Optimization Approach

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  • Anindhita

    (Department of Transdisciplinary Science and Engineering, School of Environment and Society, Institute of Science Tokyo, G5-10, 4259 Nagatsuta, Midori-ku, Yokohama 226-8503, Japan
    Research Center for Energy Conversion and Conservation, National Research and Innovation Agency, Building 625, KST BJ, Habibie Serpong, South Tangerang 15314, Indonesia)

  • Joko Santosa

    (Directorate of Environment, Maritime, Natural Resources, and Nuclear Policy, National Research and Innovation Agency, B.J. Habibie Building, M.H. Thamrin No. 8, Central Jakarta 10340, Indonesia)

  • Koji Tokimatsu

    (Department of Transdisciplinary Science and Engineering, School of Environment and Society, Institute of Science Tokyo, G5-10, 4259 Nagatsuta, Midori-ku, Yokohama 226-8503, Japan)

Abstract

Indonesia’s power sector is heavily reliant on coal, making it a major contributor to greenhouse gas (GHG) emissions. This study evaluates the role of carbon capture (CC) as a transitional mitigation strategy using the Low Emissions Analysis Platform (LEAP) for least-cost optimization. Five scenarios up to 2060 are assessed: Business as Usual (BAU), a renewables-only pathway (NRE), two carbon-capture strategies (CALL and CNEW), and a hybrid scenario (COMB). Results show that NRE eliminates fossil power plants but increases system costs by 3.2% and raises reliability challenges due to the variability of solar generation. CALL achieves the lowest abatement cost (USD 0.93/tCO 2 e) but leaves 105 Mt CO 2 e residual emissions by 2060. COMB provides the most balanced outcome, cutting emissions by 96% (40 Mt CO 2 e), increasing costs by only 1.9%, and ensuring energy security by combining CC with renewable expansion. These findings highlight that a hybrid strategy offers a pragmatic, least-cost pathway for Indonesia to align its power sector with net-zero targets while maintaining grid adequacy.

Suggested Citation

  • Anindhita & Joko Santosa & Koji Tokimatsu, 2025. "Carbon Capture in Indonesia’s Energy Sector: A Least-Cost Optimization Approach," Sustainability, MDPI, vol. 17(17), pages 1-25, September.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:17:p:7916-:d:1741087
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