Indonesia is currently facing a significant challenge in achieving its ambitious Net Zero Emission (NZE) target by 2060. The key to realizing this goal lies in the accelerated energy transition, shifting Indonesia’s energy landscape from fossil fuels towards renewable energy sources.
Amidst this collective effort, PT Paiton Energy, one of the largest Independent Power Producers (IPPs) in the country, is taking progressive action through its strategic initiative known as THERMEX.
PT Paiton Energy’s Commitment within the National Energy Landscape
Established in 1994, PT Paiton Energy has played a crucial role in supporting the national electricity system. Operating power plants in Paiton, East Java, the company contributes approximately 6% of the total electricity capacity for Java Island.
Conscious of its responsibility towards environmental sustainability, Paiton Energy is committed to transforming its operations to support the development of low-emission power generation and accelerate the energy transition.
THERMEX is one of the company’s strategic innovations aimed at enhancing power plant energy efficiency and reducing carbon emissions. This initiative reflects PT Paiton Energy’s commitment to steering its power generation operations towards lower emissions and supporting Indonesia’s energy transition.
Low-Emission Power Plant Innovation: From Biomass to Hydrogen
Paiton Energy’s commitment to the energy transition is realized through various environmental programs and technological innovations:
1. Pioneering Operational Innovation with THERMEX
THERMEX (Thermal Heat Rate Management Expert System) is a PT Paiton Energy initiative focused on improving power plant energy efficiency from the operational and performance side.
PT Paiton Energy is pioneering power plant performance improvement innovation through THERMEX, an achievement not previously documented in the Ministry of Environment and Forestry’s (KLHK) Power Plant Innovation Best Practices from 2018–2023.
This program is designed to:
- Facilitate operators in maintaining power plant operations at the optimal target.
- Increase power plant thermal efficiency and reduce emissions.
- Optimize coal fuel consumption.
- Provide early detection of equipment anomalies.
The operational innovation carried out by the team, consisting of Hamam Suhaily, Suriyan Arif Wibowo, and Hoesein Moesafi, has delivered significant economic impact. Throughout 2024, the implementation of THERMEX has resulted in a coal usage reduction of 50,496 tons (equivalent to 1,009,913.92 GJ of energy), a reduction of 131 thousand tons of CO2 and cost savings of Rp 53,020,480,738.58 annually.
These savings demonstrate that energy transition efforts can align with improvements in energy efficiency and profitability.
2. Biomass Co-Firing
As a tangible step to reduce reliance on coal, Paiton Energy is significantly increasing the use of biomass as a mixed fuel.
In 2024, the company has conducted trials using biomass for up to 6% of the total fuel.
This use of biomass directly reduces coal consumption and has a positive environmental impact, as biomass has a lower sulfur content and produces less ash. This strategy is estimated to reduce annual carbon emissions by over 70 thousand tons of CO2.
3. Carbon Offset and Other Renewable Energy Programs
In addition to core power plant innovations, Paiton Energy is running a comprehensive Carbon Offset program, reflecting a holistic approach to supporting Indonesia’s energy transition. This program includes:
- Installation of a 1 MW Solar Power Plant (PLTS) at the company site and employee housing.
- Construction of Micro Hydro Power Plants (PLTMH) in several villages in Probolinggo.
- Community forest and mangrove planting programs.
Furthermore, Paiton Energy is establishing research collaboration with Universitas Gadjah Mada (UGM) for green energy development, including plans for a transition to hydrogen energy.
This collaboration represents a futuristic and innovative step toward achieving net-zero emission targets, positioning Paiton Energy at the forefront of clean energy technology.
Supporting the Net Zero Emission Target
The THERMEX innovation demonstrates PT Paiton Energy’s commitment to enhancing energy efficiency and reducing emissions. Coupled with other programs such as biomass co-firing, renewable energy development, and carbon offset initiatives, these efforts contribute significantly to carbon emission reduction and support the Net Zero Emissions 2060 target.
The THERMEX initiative is clear evidence that major players in the energy industry are ready to take a proactive role in realizing a sustainable, reliable, and environmentally friendly energy transition in Indonesia.
THERMEX is a representation of PT Paiton Energy’s multi-dimensional commitment in responding to environmental and national demands.
As the largest IPP in Indonesia, Paiton Energy’s efforts to transform through operational efficiency, the use of biomass, and investment in renewable energy accelerate the movement toward low-emission power generation.
This program affirms that the acceleration of Indonesia’s energy transition is not only the government’s responsibility but also a strategic role for the private sector. With continuous innovation like THERMEX, PT Paiton Energy is laying a strong foundation for a cleaner and more sustainable energy future.
