The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM), has partnered with Hitachi Energy to develop clean energy technology, as evidenced by the signing of a Letter of Intent (LoI) on June 19, 2023. Hitachi aims to expedite the energy transition in Indonesia.
Hitachi Energy, a global energy solutions provider focusing on developing innovative technologies and solutions for a sustainable and decarbonized energy future. The company has been present in Indonesia since 1980, supporting the country’s electricity infrastructure.
The company has also been involved in several energy transition projects in Indonesia, including the connection of the 220-megawatt (MW) Rantau Dedap geothermal power plant in South Sumatra to the Sumatra grid, providing carbon-free electricity. Hitachi Energy has also implemented grid-edge solutions in various regions, such as microgrids in Semau, Selayar, and Nusa Penida islands, which contributed to meeting 20% of the electricity demand during the recent G20 summit.
Cooperation to expedite energy transition
Indonesia and Hitachi Energy will conduct knowledge transfer and studies to develop technology solutions in electricity infrastructure to accelerate the energy transition in Indonesia.
“The agreement between both parties involves knowledge transfer, joint studies, and the development of technology solutions, particularly in the field of electricity infrastructure,” said Dadan Kusdiana, the Acting Secretary General of the Ministry of ESDM.
Arifin Tasrif, Minister of ESDM, revealed that Indonesia’s electricity demand is projected to reach 1,942 terawatt-hours (TWh) by 2060. To meet this demand, the Indonesian government has already created a roadmap to establish a renewable energy-based power generation capacity of 700 gigawatts (GW) by 2060.
“To achieve this goal, we require support in terms of technology, industry, and infrastructure from all stakeholders,” stated Tasrif.
According to Tasrif, Hitachi Energy possesses the required technology and digital transformation capabilities to expedite the energy transition. In response, CEO of Hitachi Energy Claudio Facchin expressed the company’s support for the Indonesian government in achieving its established targets, as accelerated energy transition is key to reaching net-zero emissions (NZE) and addressing the climate emergency.Â
“We are delighted to strengthen our long-term relationship in Indonesia and support the government in achieving its ambitious targets,” Facchin said.
He further elaborated that the technical collaboration with Hitachi Energy would focus on renewable energy integration, interconnectors, power quality, grid-edge technology, and digital solutions to manage the complexities of emerging electricity supply and demand.
“This is an excellent example of collaboration to achieve shared goals in advancing sustainable energy for the future, benefiting everyone,” he added.
Problems facing Indonesia
Tasrif acknowledged that a major challenge in providing renewable energy-based electricity is the country’s diverse energy sources, given that Indonesia is an archipelago. Therefore, the government has also devised a national super grid program to connect the islands, particularly the major ones.Â
“Currently, we are working on connecting the northern part of Sumatra to the eastern part of Java,” he added.
Furthermore, Tasrif emphasized that accelerating this program underlines the need of collaboration and cooperation with all stakeholders, both nationally and internationally, with Hitachi Energy being one of them.
