Indonesia needs to tap into renewable energy sources, particularly geothermal and solar energy sources, as one of the world’s most populous country and a major global emitter is decarbonizing its economy. “Demand and potential for renewable energy in Indonesia are soaring, it is expected that the Indonesian energy demand will increase considerably,” Coordinating Economic Affairs Minister Airlangga Hartarto said during a JakPost UpClose webinar on Tuesday.
“By the end of 2060, we will put all kinds of renewable energy, including geothermal power and hydropower, in the system. If we still need more, it will come from wind and solar,” Edwin Nugraha Putra, executive vice president of electricity system planning at PLN.
PLN is currently developing a geothermal power plant with an installed capacity of 590 megawatts (MW), consisting of 360 MW generated by PLN and 230 MW generated in collaboration with state-owned geothermal company PT Geo Dipa Energi and state-owned Pertamina Geothermal Energy.
Indonesia, which has the world’s largest geothermal reserves, aims to achieve a geothermal power capacity of 3.35 gigawatts (GW) by 2030, as outlined in its 2021-2030 Electricity Procurement Plan (RUPTL). Data from the Energy and Mineral Resources Ministry data show that only 9.2 percent of the country’s 23.7 GW geothermal potential, or 2.18 GW, has been harnessed to date, while 1.33 GW has been allocated for expansion plans through to 2035.
Low offtake tariffs remain the unaddressed challenge to developing geothermal power plants in Indonesia, experts say, after the recent launch of a state-funded well-drilling program addressed the issue of high production costs, experts say.
Jiro Tominaga, Indonesia’s country director at the Asian Development Bank (ADB), said changing certain policies was key to pushing Indonesia’s energy transition to achieve a 23 percent renewable energy mix by 2025. These included cutting fossil fuel subsidies, setting electricity tariffs that supported renewables, and encouraging private sector investments. The ADB has been supporting Indonesia’s energy transition since 2012, contributing over $3 billion in funding.
May 25, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/05/25/energy-industry-leaders-push-for-indonesias-energy-transition.html)