Renewable-energy_Blog
Institute for Essential Services Reform (IESR), a think tank for renewable energy (EBT), encourages the government to accommodate land allocation for the development of new and renewable energy (EBT) in regional spatial planning, in an effort to accelerate EBT development in Indonesia.
Coordinator of Research for IESR Data and Modeling Group, Pintoko Aji, said that the realization of EBT development in Indonesia is still far from its potential.
Based on IESR study, Indonesia has the potential to develop 333 Gigawatts (GW) of financially feasible EBT projects, which consist of onshore Wind Power Plants (PLTB) at 167 GW, ground-mounted Solar Power Plants (PLTS) at 165.9 GW and Mini-hydro Power Plants (PLTM) at 0.7 GW.
Pintoko said these results were obtained from financial simulations and private-public partnership schemes at 1,500 locations that are technically potential.
"Of that amount, 205.9 GW or around 61 percent of the total financially feasible potential is indicated to have an Equity Internal Rate of Return (EIRR) above 10 percent, which indicates promising investment potential," he said on Thursday, March 27, 2025.
He was of the opinion that land availability is one of the factors that can encourage this potential to be realized.
In addition to land accommodation in regional spatial planning, Pintoko said the government also needs to simplify the land acquisition process for EBT development. Thus, the risk of EBT investment can be reduced so as to attract investor interest.
"The government also needs to set specific targets per region in the utilization of renewable energy," he concluded.
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