Renewables Power Plants COD within Target, Says Official

MINISTRY OF ENERGY AND MINERAL RESOURCES

THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 63.Pers/04/SJI/2022

Date: 8 February 2022

Renewables Power Plants COD within Target, Says Official

The Director General of New, Renewable Energy and Energy Conservation (NREEC) of the Indonesian Ministry of Energy and Mineral Resources (EMR), Dadan Kusdiana, confirms that the target of Commercial Operation Date (COD) for new, renewable energy power plants will be met because it is being monitored jointly with state electricity utility PT Perusahaan Listrik Negara. (Persero). "We, together with PLN, believe that the COD is still within target. We have a joint team to monitor this," said Dadan at a virtual discussion titled "Realizing Energy Transition for a Low Emissions Future" held on Monday (7/2).

Until the end of 2021, Dadan explained, the share of renewable energy reached 11.5 percent of the total national energy. There is still an 11.5 percent difference to be fulfilled in the next four years. During this period, both PLN and independent power producers (IPP) will make every effort to realize 10 gigawatts (GW) until 2025. By 2030, the NRE mix is targeted to reach 20.9 GW. This figure is in accordance with PLN's electricity supply business plan (RUPTL) for 2021-2030.

The figure has been set to anticipate increasing consumption of electricity in the future. Dadan is convinced Indonesia's electricity consumption will slowly rise to catch up with other Southeast Asian countries.

"Talking about electricity consumption, our electricity consumption is still below neighboring countries. Malaysia, for example, consumes three times our electricity usage. This is a potential in the future. Indonesia will still grow fast, and need more electricity. I think the current oversupply that hits PLN is of temporary nature. I believe PLN also thinks so. We will pass these times, and gradually, renewables share can increase," said Dadan.

According to Dadan, one of the government's focuses on the issue of energy mix is the use of renewable energy potential to reduce greenhouse gas emissions. The involvement of the private sector to support PLN is also considered an important part to achieve the renewables target. In 2021, the government has successfully added 600 MW of renewables to the generating capacity. In 2022, as much as 700 MW will enter PLN's systems.

For this reason, the use of renewables is focused on reducing greenhouse gas emissions (GHG). "What we are looking for is how to reduce GHG. We all know that the promising avenue is to encourage the use of clean energy. The President has in several occasions conveyed that the potential is huge, but the utilization is gradual. Based on the final calculation of the primary energy mix, we came to 11.7% in 2021, while we actually target for 23% in 2025. We are still halfway there, so we have a lot to do to catch up," Dadan concluded. (IY)

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