Abstract
In this paper, the implications of CO 2 emission mitigation constraints in the power sector planning in Indonesia are examined using a long term integrated resource planning model. An approach is developed to assess the contributions of supply- and demand-side effects to the changes in CO 2, SO 2 and NO x emissions from the power sector due to constraints on CO 2 emissions. The results show that while both supply- and demand-side effects would act towards the reduction of CO 2, SO 2 and NO x emissions, the supply-side options would play the dominant role in emission mitigations from the power sector in Indonesia. The CO 2 abatement cost would increase from US$7.8 to US$9.4 per ton of CO 2, while the electricity price would increase by 3.1 to 19.8% if the annual CO 2 emission reduction target is raised from 10 to 25%.
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