For the next decade, UK planning to close coal plants and stop burning coal for electricity. The plan is to build a new fleet of gas power plants facilities as the main source for electricity. Regarding this, UK Energy Secretary Amber Rudd announce that the energy sector is one of the highest priority for the country. Also, the Department of Energy prepare a new strategy for this sector. Companies must stop the using of coal energy by the end of 2025.
Rudd thinks that the cost spent for wind farms and solar panel power is way bigger. An analyst says that every household in UK spent around 68 euro per year for renewable energy subsidy. This includes wind farms, solar panel, and biomass. Rudd hopes that this regulation could balance the importance of decarbonated and the importance of guarding the expense cost. Energy is one the fundamental which hold the country’s economy. One of the success measure from how fast the renewable energy to be applied, not how effective and save the energy is.
Coal plants, referring to Rudd, is a fossil fuel and most damage pollutant since its applications still commonly used in the UK at least until a year before. Rudd says that it is unusual for a country with a developed economy like UK still depends on 50 years old power station. Beside that, the companies with coal burning power are potentially very polluting.
With lowering prices and limited supply, coal included in an unreliable power source. At this time, UK is in the progress of researching for the new generation of gas power plants to power the country. The new material would be environment friendly than burning coal. According to a data, UK’s the main material for electricity is gas power for 30%. Then coal plants for 29.1%, nuclear power plants 19%, and the others are bio energy, wind plants, solar panel, oil, and water. The biggest contribution that might be reducing emission of air was to convert coal with gas. In the next ten year, UK will build energy center as the most save energy.
UK Department of Energy announce that the remaining companies will stop operating at least in 2023 as the regulation being finished in within period. In the mean time, this cause pro and cons in the industry. Until last year, coal plants still needed as UK’s second largest power source. While some companies has been closed in recent years regarding the environmental regulation to prevent acid rain. The capacity of all the remaining companies that still using coal plants are around 19 Gigawatt (GW), says Department of Energy and Climate Change. Rudd also mentions about nuclear power plant.
Indonesia also has many coal plants based projects and seems to be slowing down as commodity prices drop. Expert Anton Wahjosoedibjo says that there are some steps that can be applied to the coal production companies. First is to tighten belt while improve efficiency to increase margin. The next step is using the condition as an opportunity to train personnel, cut personnel, or restructuring organization. Third, reviewing priority projects; defer, postpone, or cancel projects. Then opportunity to farm-in or farm-out, acquire or dispose projects. Lastly, choose to cut selected investment.