RI Teams Up with Denmark Targeting on Development of Clean & Economical Renewable Energy

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 694.Pers/04/SJI/2019

Date: 5 December 2019

RI Teams Up with Denmark Targeting on Development of Clean & Economical Renewable Energy

Ministry of Energy and Mineral Resources (EMR) is building a strategic partnership with the Government of Denmark. The partnership is marked with the giving of recommendations by Denmark to Indonesia in the forms of the Regional Energy Outlooks of 4 provinces, namely South Kalimantan, North Sulawesi, Gorontalo and Riau.

"Denmark has given its support in the development of the Regional Energy Master Plan (RUED) of four provinces," said Minister of EMR Arifin Tasrif at the press release in Jakarta, Thursday (5/12).

Arifin says the Government of Denmark has helped to analyze the most appropriate scenario for the 4 provinces in terms of affordable, strong, and environmentally friendly electricity system, and how alternative energy, NRE in particular, replaces fossil energy.

"Our challenge is how to use the NRE potential in the outlook and to reduce dependency on fossil energy," Arifin confirms.

The partnership is warmly welcomed by Danish Minister of Development Cooperation Rasmus Prehn. The recommendations given by Denmark are expected to create more economical and efficient climate of NRE industry. "In addition to increasing the NRE use, these recommendations can create more economical and efficient prices of NRE with the technologies applied," said Rasmus.

Detailed recommendations of the RUED outlooks given by Denmark are as follows:
1. North Sulawesi and Gorontalo Outlook: North Sulawesi has the potential to develop NRE, especially hydro, while Gorontalo has enormous potential to develop solar. If the two provinces can develop hydro and solar energy as well as use natural gas to replace coal, they can reduce as much as 50% of greenhouse gas emissions by 2030.

2. South Kalimantan Outlook: Energy use is still dominated by coal, but wind and solar energy and natural gas combined cycles can become cheap energy alternatives to replace coal. If the province can develop its NRE potential up to 34% for electricity supply, greenhouse gas emission can be reduced by up to 48% by 2030.

3. Riau Outlook: Riau and Sumatra overall have NRE potential, especially wind and solar energy, that exceeds the NRE share set out in the 2019-2028 RUPTL. Solar energy and biogas can be competitive if they receive good financing scheme. If NRE mix can reach 2/3 of the electricity supply in Riau by 2030 according to the RUPTL, the saving from electricity infrastructure cost can reach 13 billion rupiah. (IY)

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