Renewable Energy Bill will Back Green Economy, Says High Official
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 144.Pers/04/SJI/2021
Date: 27 April 2021
Renewable Energy Bill will Back Green Economy, Says High Official
Director General of New, Renewable Energy and Energy Conservation of Indonesian Ministry of Energy and Mineral Resources (EMR), Dadan Kusdiana, said that Renewable Energy bill currently prepared jointly with the parliament would accelerate renewable energy development in Indonesia.
"The Renewable Energy bill has an acceleration nature, because it sets out ways to double the realization of renewable energy use and the magnitude is great. For example, if we want to double electricity, we have to increase generation (from renewables) to 12,000 gigawatts in five years," said Dadan at CNBC Indonesia's Energy Conference under a title Examining the Urgency of New, Renewable Energy Bill held on Monday (26/4).
In addition to improving coordination and synergy between sectors, continued Dadan, the existence of a regulation on renewables is expected to speed up investment processes. "The existence of a regulation is expected to be nationally beneficial, from both renewable and economic perspectives," he explained.
One of the economic aspects Dadan highlighted is the sustainability of PLN as a corporation. According to Dadan, energy transition will positively impact PLN's finance. "The presence of renewable-based electricity will actually improve the cashflow of PLN," he said.
Dadan emphasized that renewables must be efficient, so they can compete with fossil energy. "Please don't get stuck in high economic costs. Renewables can lose competitiveness. So, renewables offer two solutions, namely as a provider of better and cleaner electricity and of sustainable employment," he said.
According to Dadan, renewables usage not only has a positive impact on the environment but also follows the trend in the economy. Developed countries are busy making their energy transitions, focusing on the carbon footprint of a product.
The Ministry of EMR has offered a number of innovations to speed up the development of renewables. Besides building solar PV power plants on reservoirs or lakes, the ministry utilizes Dimethyl Ether (DME) to substitute LPG. The use of LPG has put a burden on state finance because 70% of LPG are imported.
"If we want to achieve zero emission, we must not rely on the production side only, but instead we also have to look at the economic side. For electricity, there are several examples; the oil and gas subsector has got commercial cooperations. For DME, we need to consider the location, too," continued Dadan.
Dadan went on to say that DME had a better combustion ability than LPG. He acknowledged that the use of DME had to be accompanied by other sectors that could absorb the emissions during DME production so that total emissions would be equal to zero.
"The substitution of LPG with DME is of national interest. If DME cannot achieve the goal, a partner will be found, namely other sectors that can absorb emissions so that zero emission wil be reached," Dadan concluded. (IY)
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