Indonesia to Add 41 GW from "Green" RUPTL

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 182.Pers/04/SJI/2020

Date: 28 May 2021

Indonesia to Add 41 GW from "Green" RUPTL

The Indonesian government is targeting additional electricity generation to reach 40,967 Mega Watt (MW) or 41 Giga Watt (GW) in the next ten years. To meet this target, the development of electricity infrastructure will prioritize more environmentally friendly (green) power plants with a new, renewable energy basis.

The target is stated in draft Electricity Supply Business Plan (RUPTL) of the state electricity utility PT PLN of 2021-2030. "We are targeting that in the next ten years, which includes the year 2021, there will be additional generation of approximately 41,000 Mega Watt," said Director General of Electricity of Indonesian Ministry of Energy and Mineral Resources (EMR), Rida Mulyana, in a hearing (RDP) with Commission VII of the Indonesian House of Representatives (DPR RI) on Thursday (27/5).

Rida went on to explain that 34,528 MW had been discussed with PLN, while 6,439 MW were still in advanced discussion stage.

This year, the additional capacity is targeted at 8,915 MW. The addition will be dominated by coal-fired/mine mouth power plants of 4,688 MW, and gas/combined cycle/gas engine/gas and steam engine power plants of 3,467 MW. The remaining 22 MW will come from diesel power plants and around 737 MW from new, renewable energy power plants which consist of hydroelectric power plants, geothermal power plants, biomass power plants, hybrid power plants, and solar power plants.

Rida underlined that the RUPTL being drafted would give more shares to renewables by up to 48%, while the remaining 52% would still be provided by fossil-based power plants. "Compared to the existing RUPTL which has a composition of 30% renewables and 70% fossil fuels, for 2021-2030 we prepare a greener business plan," he said. The preparation of a "green" RUPTL is in line with the 23% target for renewable share by 2025.

To ensure that Electricity Generating Cost (BPP) does not increase, renewables power plants that do not increase BPP will be ranked high. The government will also promote solar power plants, advance co-firing at coal-fired power plants while maintaining environmental sustainability, and develop geothermal and hydroelectric power plants on a realistic schedule as well as a de-dieseling program through renewables power plants.

On the same occasion, Vice President Director of PT PLN Darmawan Prasodjo stated that the current installed capacity had reached 63.2 GW. With the 40 GW addition, the total installed capacity will reach around 100 GW in the next ten years. "The addition of renewables is around 16.1 GW or close to 40%, consisting of hydroelectric power plants, geothermal power plants, and other renewables power plants," Darmawan said.

RUPTL: Investment Barometer in the Electricity Subsector

According to Rida, the drafting of the 2021-2030 RUPTL will be accelerated in order to attract investors in the electricity subsector. Currently, the draft RUPTL still needs some input from Minister of EMR.

"The point is the draft RUPTL is still being processed, still in discussion; we're still dealing with several issues. We have agreed a lot, but we still need inputs from the top management," explained Rida.

A number of issues must be addressed in the RUPTL, for example the electrification ratio target of 100% by 2022. "This concerns access to justice, and becomes an important part of the RUPTL (adjustment) component," said Rida.

Other issues include maintaining the electrical load balance of each electric power system, achieving the 23% renewables target from 2025 on, preventing the increase in BPP, and not adding coal-fired power plants except for those already reached financial closing or under construction.

In addition, the government will relocate power plants in order to reduce oversupply in Java, accelerate intra- and inter-island electrical interconnection in order to increase reliability, reduce BPP and sharing resource of renewable energy, and increase the share of renewables power plants to 48%.

According to the existing rules, the RUPTL is prepared every ten years and can be modified based on evaluation results or if there are points that need to be improved. Changes can also be made based on the discretion of Minister of EMR or governor according to their authority. "Reflecting on these facts, the RUPTL is an investment barometer and the image of the government policy in infrastructure development of the electricity subsector," said Rida.

Rida hopes that the RUPTL can be completed soon and will attract investors. "Insya Allah (God willing), it can be completed soon. The importance of investment in all sectors, including that of electricity, has increased, especially during this pandemic," Rida concluded. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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