The Indonesian Renewable Energy Society (METI) said that the use of new and renewable energy (NRE) in the Indonesia is still stuck at 4% or 147.4 gigawatts (GW) out of the total potential of 3,685 GW despite efforts geared towards decarbonization by building green power plants and cancellation of steam power plant (PLTU).

Achieving de-carbonization target

In addition, in an effort to achieve de-carbonization target, the Indonesian government has been making efforts to shift to renewable energy

A number of projects owned by the government, such as four new and renewable energy (NRE) generators, have started operating in 2023 with a power of 203 megawatts (MW).

The two projects include the largest solar power plant in Southeast Asia (PLTS) in West Java with 145 MW peak (MWp), and a hydroelectric power plant (PLTA) in Aceh with a capacity of 45 MW and an additional 43 MW in 2024.

Also, there are also two geothermal power plants (PLTP) in Wonosobo with a capacity of 10 MW which is an addition to the existing 60 MW, and PLTP in East Nusa Tenggara with a capacity of 13 MW.

The Ministry of Energy and Mineral Resources (ESDM) said that the total growth in NRE electricity capacity had reached 12.5 GW until December 2022, and the target is to add 368 MW in 2023.

As for pursuing decarbonization, PT Pembangkit Listrik Negara (PLN) (Persero) cancelled the 13.3 GW PLTU as a step to reduce carbon emissions.

"We have also cancelled PPA of around 1.3 GW for PLTU, which means we have also avoided around 170 million metric tons (MT) of CO2 for 25 years," said Darmawan Prasodjo, President Director of PLN.

In addition, various steps that have been taken by PLN for decarbonization and the transition to green energy have resulted in a total reduction and avoidance of up to 3.7 billion tons of carbon emissions (CO2).

Far from optimum NRE utilization

According to METI, Indonesia still fall short of optimizing the use of NRE. Even though it has taken many steps to decarbonize, Indonesia is still stuck at 4% of its total NRE potential.

Wiluyo Kusdwiharto, Director of Project Management and New and Renewable Energy of PLN said that the government needed to make bold and consistent breakthroughs to overcome the accelerated use of NRE.

METI's findings are in line with the realization of the implementation of PLN's electricity supply business plan (RUPTL) for 2021-2030, which targets an additional 20.9 GW of NRE generating capacity.

This amount comes from 10.4 GW of hydro energy, 3.4 GW of geothermal, 5 GW of solar, 500 MW of biogas and biomass and 1.5 GW of other energy.

PLN currently claims to have developed NRE-based power plants that can generate 13 GW of electricity. However, only 800 MW has been operating commercially.

Meanwhile, as much as 5.4 GW is in the power purchase agreement (PPA) stage with private power developers. A total of 1.2 GW is in the procurement implementation process, 5.6 GW is in the technical and funding study stages, and the remaining 7.9 GW is still in the planning stage.

"To immediately replace black energy, especially from coal and fuel to green energy, requires a lot of money, competent human resources and adequate equipment," said Kusdwiharto, July 5, 2023.

A number of challenges in the development of NRE are being faced by Indonesia, such as obstacles in the implementation of the construction of a PLTA such as land requirements, location and permits.

Meanwhile, PLTP requires a larger investment, and the project development time is up to 7-10 years, along with location and licensing aspects which are challenges for PLTP development.

Furthermore, PLTS and wind power plants (PLTB) have problems such as requiring system readiness to accommodate wind and solar shocks, and also require additional components in the form of special batteries for energy storage or battery energy storage system (BESS).