Friday, April 19, 2024

PLN gets US$1 million grant from USTDA for renewable energy study

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State-owned electricity company PT PLN has secured a grant of approximately US$1 million (IDR 15.6 billion) from the United States Trade and Development Agency (USTDA) in support of a feasibility study for the development of new renewable energy infrastructure in five remote, outermost, and disadvantaged regions (3T) in Eastern Indonesia.

The collaboration was marked by the exchange of the Grant Agreement document, “The Indonesia Net Zero World Renewable Energy Mini-Grid,” signed by USTDA and PLN, on Monday, February 12, 2024.

PLN President Director, Darmawan Prasodjo, emphasized the importance of collaboration and partnerships in advancing Indonesia’s energy transition.

This initiative aligns with the Indonesian government’s announced targets of Enhanced-Nationally Determined Contribution (E-NDC) by 2030 and Net Zero Emissions (NZE) by 2060.

“This partnership is in line with PLN’s goal to increase the share of renewable energy in realizing Net Zero Emissions,” Darmawan said on Tuesday.

PLN’s Finance Director, Sinthya Roesly, explained that the grant would be used for technical and economic feasibility studies for mini-grid new and renewable energy (EBT) projects in the 3T regions of Eastern Indonesia.

The activities include detailed technical design solutions, economic and environmental impact evaluations, and other effects of EBT power plants when operational. This study is crucial for analyzing and supporting PLN in preparing EBT projects in the 3T regions in the future.

Sinthya expressed hope that this collaboration would improve electricity access in the five 3T regions to 24 hours a day through the support of green energy.

“I hope this collaboration is a significant first step that will have a great impact on the people of Indonesia,” Sinthya said.

In collaboration with USTDA, PLN will develop hybrid power plants by integrating existing Diesel Power Plants (PLTD) with Solar PV and battery storage at five potential 3T locations in Eastern Indonesia.

USTDA Director, Enoh T. Ebong, stated that this collaborative development of EBT with PLN aligns with USTDA’s global vision to promote sustainable growth in developing countries.

The transformation to EBT will contribute to climate crisis mitigation, particularly through the provision of reliable electricity access.

“By offering available technical resources and technology, we see a significant opportunity to expand environmentally friendly energy access throughout Indonesia,” Enoh T. Ebong said.

The Charge d’Affaires ad interim at the U.S. Embassy in Indonesia, Michael F. Kleine, mentioned that USTDA’s financial assistance aligns with the outcomes of the meeting between the President of Indonesia, Joko Widodo, and the President of the United States, Joe Biden, last year, regarding efforts to enhance bilateral relations, including clean energy cooperation.

“Therefore, we at the U.S. Embassy are very excited about this project, through innovative collaboration and trade, with the same goal. We will achieve the goals we want and once again make this year not only a year of prosperity but also of clean energy,” said Michael.

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