Indonesia Energy Ministry: Ministry of Energy and Mineral Resources Encourages Large-Scale NRE Development to Reduce GHG Emissions

Indonesia is committed to addressing issues related to energy access, smart and clean technology, and financing in the energy sector as steps to support the achievement of the Paris Agreement targets, namely reducing greenhouse gas (GHG) emissions in accordance with the Nationally Determined Contributions/NDC by 2030 by 29 % with own ability and 41% with International Assistance. This was stated by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, at the launch of the HSBC Energy Transition Project in Indonesia, Tuesday (10/8).

Arifin also emphasized that the mitigation action that plays the biggest role in efforts to reduce GHG in the energy sector is the development of New and Renewable Energy (EBT). The government continues to strive to increase the portion of NRE in the energy mix, particularly in the electricity sector. Currently, the NRE mix has only reached 11.2 percent, still below the 2025 energy mix target of 23%. The NRE potential which reaches more than 400 Gigawatt (GW) has only been utilized for 10 GW or 2.5% of the total reserves.

“Currently, the Ministry of Energy and Mineral Resources has prepared a Grand National Energy Strategy (GSEN) which is expected to be able to produce solutions to the challenges of national energy security and independence and to answer the challenges currently being faced, including the limitations of renewable energy development and demands for more massive and efficient infrastructure development. ,” said Arifin.

At GSEN, the Ministry of Energy and Mineral Resources maps out a plan to increase the capacity of NRE by 38 GW, until 2035, through efforts to accelerate primary/final energy substitution, convert primary fossil energy, increase NRE capacity, and utilize non-electric/non-biofuel EBT.

“To achieve this target, the Government prioritizes the development of solar energy because the investment costs are now more competitive, cheaper, and the implementation time can be faster, and has enough sources,” he said.

In prioritizing PLTS development, Indonesia relies on three ongoing programs, namely Rooftop PLTS, Large-Scale PLTS in ex-mining areas and non-productive land, and Floating PLTS.

“Our Rooftop PLTS has a lot of potential, from government buildings, buildings and facilities owned by SOEs, industries and household businesses. We have a target in 2030, we must be able to install up to 3.6 GW. As for the development of Large-Scale PLTS, the Government has set a target of 5.34 GW,” said Arifin.

Currently, Indonesia is also building a floating PLTS with a capacity of 145 MW in the Cirata Reservoir which is targeted to be operational in November 2022.

“This Floating PLTS, from day to day, shows a higher level of competitiveness. Of course we hope that these types of Floating PLTS will continue to grow and then we can also take advantage of all reservoirs, both those with hydropower and those without. We have the potential is up to 12 GW in 28 existing hydropower plants and in reservoirs or lakes with a potential of 28 GW in 375 locations,” he added.

Large-scale NRE development is also carried out through the Renewable Energy-Based Industry Development (REBID) program with a total potential of 50 GW. The REBID program was launched through integration between the supply side and the demand side to create industrial growth.

“Such as the use of large-scale hydropower that is integrated with industrial areas, so as to create synergy between NRE development and economic areas. In the future, these industries will definitely require industrial products that utilize clean energy. For that we must be able to respond to this trend going forward , so that our industrial products can still compete in the international market,” said Arifin. (DKD)