PT PLN (Persero) has signed a memorandum of understanding (MoU) with five leading global energy companies for the development of a green electricity ecosystem in Indonesia. The collaboration was announced during Enlit Asia 2023, where PLN continues to expand its global partnerships.
Darmawan Prasodjo, PLN’s CEO, emphasized the need for the global energy community to unite in addressing the climate change crisis. He stated that collaboration is essential to overcome the challenges of energy transition, spanning technological innovation, investment, and policies.
“With this collaboration, we will not only be able to map every challenge but also overcome each of them. Thus, the significant mission of energy transition can be realized,” said Darmawan on November 15, 2023.
The five companies partnering with PLN are:
- PT Hitachi Sakti Energy Indonesia;
- Electricite de France SA (EDF) from France;
- GE Vernova from the United States;
- Danish Energy Agency from Denmark;
- China Southern Power Grid International (HK) Co Ltd from China.
Darmawan stated that PLN would receive support for executing energy transitions in Indonesia through collaboration with these companies, aiming to achieve net-zero emissions by 2060.
The MoUs between PLN and the five companies cover various aspects. For example, the MoU with HK explores long-term partnership opportunities for the development of High Voltage Direct Current (HVDC), pumped storage, inter-island interconnections, and smart grids.
Meanwhile, the MoUs with EDF, GE Vernova, and The Danish Energy Agency encompass collaborative studies through information exchange to support Indonesia’s energy transition.
These collaborations align with PLN’s identification of challenges related to the mismatch between the vast potential of isolated renewable energy sources (EBT) and the electricity demand centers in urban areas.
“We have identified a mismatch between the significant potential of EBT and the electricity demand center. We are in the process of designing the development of a green enabling transmission line to facilitate it,” explained Darmawan.
Darmawan mentioned other challenges arising from intermittent and fluctuating renewable electricity influenced by weather changes. In response, PLN is prepared to build a smart grid equipped with flexible generation, smart transmission, smart distribution, and smart meters.
To succeed in these efforts, PLN has designed the Accelerated Renewable Energy Development (ARED) program. ARED will continually drive the development of green enabling transmission lines and smart grids to strengthen the green electricity supply system in Indonesia.
“Can PLN do it alone? The answer is no. This is a global challenge, and we have to overcome it comprehensively. The global community must unite to tackle the challenges of climate change,” emphasized Darmawan.
In addition to these initiatives, PLN plans to add renewable energy-based power plants, constituting 75% of the draft Electricity Supply Business Plan (RUPTL) for the 2024-2033 period.
“Seventy-five percent of the additional power plant capacity is based on new renewable energy, around 60-62 gigawatts (GW). There is an additional 25 GW, which is based on gas power plants,” he added.
The breakdown of the 75% increase in renewable energy-based power plants includes 31 GW of baseload renewable energy, approximately 28 GW of intermittent renewable energy such as wind and solar, and 2.4 GW of new energy, potentially increasing to 5-6 GW.