Environmental and Utility Planning Implications Assessment of Sulfur Tax : The case of fndonesian Power Sector.

This paper presents the environmental and utility planning implications assessment of sulfur tax es an alternative instrument for SOt emission reduction from the Indonesian power sector. The implications were analyzed based on a long-term Traditional Resource Planning perspective. The methodologr used to calculate the implication is least cost expansion model expanded by Integrated Resource Planning Model less Demand Side Management @SfvD option. SevLn scenarios based on sulfur tax rate have been selected. The planning horizon period is 2006-2025. The environmental implication shows that SO2 emission would decrease significantly i.e. 40o/o at sulfur tax rate of US$250/tS end 847o at sulfur tax rate of US$0OltS, while at the same rate CO2 and NO, emissions would decrease to 537o and 677o respectively. From generation system sspect, introducing sulfur tax to power sector would promote the selection of clean technologr power plant for expansion planning. The generation plant mix would reduce the consumption of coal fuel and increase the consumption of gas