Regulating Biogas Power Plant From Palm Oil Mill Effluent (POME): A Challenge to Indonesia's Just Energy Transition

Abstract

Palm  Oil  Mill  Effluent  (POME)  is  a  potential  source  of bioenergy  but  it  is  also  known  as  one  of  the  biggest emission's  contributor  from  palm  oil  industry  thus capturing  the  produced  methane  (CH4)  is  necessary  in creating  a  sustainable  energy  for  the  environment.  This article examines current regulations of generating electricity  from   POME.  The  ultimate  aim  is  to  promote  renewable energy deployment in Indonesia in order to support the just  energy transitions to a low carbon economy. By using legal doctrinal and socio legal research, this study initially looks at  the  existing regulations.  Afterwads,  interviews  are conducted  to  the  palm  oil  industry  in  order  to  explore potential  threats  in  developing  this  source  of  energy.  The main findings suggest that there are number of government interventions needed to support the construction of POME based  biogas  power  plant,  such  as  providing  a  scheme  of green  loans,  adjusting  the  feed-in  tariffs  and  revising  the grid systems, imposing incentives for carbon reduction, and  applying  the  power  purchase  agreement.  In  addition, increasing  public  perception  to  combat  the  climate  change by moving significantly to a low carbon economy is critical to fostering the 2030’s emission reduction target