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Coal is Paving the Way for Renewables Energy of the Future


Have we ever realized that coal is paving the way for renewables energy of the future? Coal has been supporting and fulfilling humanity’s needs of energy for hundred of years. Coal was there during the first industrial revolution in the 1700s, to the latest industrial revolution 4.0 today. The ability of coal to generate power and energy had helped us build the modern civilization we know and enjoy today.

Looking at these historical facts, it is undeniable that coal as an energy source has pave the way for humanity’s progress and drive forward the advancement of technology, innovation, and the discovery and development of new and renewable energy sources today and tomorrow. Moving forward, global energy demand will continue to increase along side with the increase of human population, better livelihood and quality of lives, as economic development. It is estimated that the global population will reach 10 billion people by 2060. To that end, all energy sources that we know today and the up coming ones must be managed and effectively harnessed.

According to the data from World Coal Association, coal contributed 37% of electricity generation world-wide and support 70% of the global steel industry. The latest data from the International Energy Agency shows that even today, coal is still the primary source of energy for global electricity generation which is vital for many industries around the world that drive the global economy both in the advanced and developing countries.

In Indonesia, the growth of the electrification ratio from year to year continues to increase. As of September 2020, the electrification ratio has reached 99.15% or grew by 11% compared to 2015, which was 88.3%. This achievement has also exceeded the target set in the 2015 – 2019 National Medium Term Development Plan (RPJMN). In the last five years, the number of villages that have been successfully electrified by electricity has also continued to increase. In September 2020, the number of villages that had electricity had reached 83,028 villages, an increase of around 12,000 villages compared to 2015, which was 70,391 villages. Thus, access to national electricity has now become more evenly distributed throughout the country. We can achieve all this, one of which, thanks to the contribution of coal.

In line with the increasing need and the vital role of electricity for our lives, the Government states that coal will continue to be the main energy source for electricity generation in Indonesia. Coal-fired power plants are estimated to continue to dominate power plants in Indonesia with a share of 45% in 2018 and will reach 50% by 2050.

Moving towards the path to a more sustainable future, coal will continue to play a role in our national and global energy security and energy mix. Currently, various technologies have been developed to ensure a more sustainable and environmentally friendly use of coal, including clean coal technologies, green coal, and carbon capture.

Together with new and renewable energies such as solar, wind, geothermal, water, bioenergy, ocean waves, and others, coal will continue to support human progress to build civilization and a better future for the future generations.

By: Corporate Communications PT ABM Investama Tbk.