An analysis of the feasibility and implications of using crude palm oil as renewable fuel for electricity generation in Indonesia

Abstract

This paper explores the use of Crude Palm Oil (CPO) as a renewable fuel for electricity generation in Indonesia to meet the government liquid biofuel target of 5% by 2025. Long-range Energy Alternatives Planning (LEAP) system was employed to model the Indonesian energy system and forecast the energy demand up to 2025. Annual energy demand was assumed to grow at 6% and PLN (Indonesia’s stateowned electricity company) business plan to meet a 94% electrification access in 2020 is used to forecast the electricity consumption. The results suggest that relying on CPO alone as the fossil fuel substitute in the electricity generation could not meet the biofuel target. However, combining the use of C..